Countdown to your first home – ways to save for that first deposit
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The Nude app aims to provide all the tools prospective homeowners need to not just calculate how long it will take to save for the first deposit on a property, but also shows actionable ideas to help boost savings. The app derived its name from the founders’ ambition to be entirely transparent in helping people to save, budget and buy their first home.
By inputting the amount required for the deposit, Nude creates a savings plan and countdown, which one can follow up with overtime to see if they’re still on track.
The average age of a first-time homeowner is 34 years-old, yet many begin saving for this purchase during their first job.
In addition to this only 10 percent of those aged 16-24 are homeowners, creating an outlook for the younger generation that it is simply impossible to own a home before the age of 30.
Crawford Taylor, Nude’s CEO and Co-founder commented: “By transforming ‘how much you need’ into ‘when you’ll buy your home’ we’re making it real.
“No one’s excited about handing over a deposit worth thousands of pounds.
“But when they can picture themselves collecting their keys and decorating their own space, they want to experience it sooner and so, feel encouraged to save more.”
With housing prices sky-high, precise planning is required to even consider buying a house in a few years’ time.
“With UK interest rates at their lowest in decades, choosing an account for its interest rate isn’t as worthwhile as it used to be.
“Every penny helps, but we want to help you save a lot more than an extra fiver,” Mr Taylor commented.
However, it’s not just the deposit that first-time buyers have to take into account.
Alongside this are other expensive necessities, such as lawyers fees, furniture and home appraisals which are often forgotten about until it’s too late.
Proper budgeting is key to a good savings plan, but few know how to actually budget so that their money works in their favour.
Many view budgeting as drawing up a spending plan at the beginning of the month and then putting aside the leftover money at the end of the month.
This method is not the most accurate nor the most effective, as during the month small expenses or emergencies may crop up, increasing the total spent and leaving less for ones savings account.
A more effective way is to negotiate what expenses are on the original budget: how flexible and necessary are they in the first place?
By saving money on those original expenses not only does it provide extra cash flow for those unexpected monthly expenses but also adds more to your monthly savings.
Nude adapts to individual customer’s spending habits to provide personalised tips to help build good saving strategies and habits.
Mr Taylor added: “There’s a lot of noise out there telling people how difficult it is to buy a home.
“We all know it’s not easy but this constant sense of doom is enough to make anyone feel discouraged.
“Saving for your first home should be a fun and exciting time,” he concluded.
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