8 smart steps to save for your first home (Without Losing Your Mind)

Saving for a first home can feel overwhelming — especially with rising costs and a deposit that seems to grow faster than your bank balance. But with a smart plan and a few strategic habits, getting the keys to your first place is totally within reach.

Here’s how to break it down and build it up:

8 steps to save for your first home

1.  Set Your Goal: Know What You’re Saving For?

   Before you start saving, figure out how much you need. In the UK, most first-time buyers need:

   
   

   • A deposit of 5%–20% of the property’s value

   • Extra costs like legal fees, surveys, moving expenses, and possibly stamp duty,

   
   

   Example:

   
   

   • Property price: £250,000

   • 10% deposit = £25,000

   • Estimated extras = £3,000–£6,000

   • Total savings target: ~£30,000

Use this number as your north star — and break it into monthly targe

2. Open a Lifetime ISA (LISA)

If you’re aged 18–39, this is the best way to save for your first home.

• Save up to £4,000/year

• The government adds 25% (up to £1,000/year) 🤑

• Must use it for a first home under £450k or for retirement

Tip:  Even if you can't save much now, open one and deposit something. You only get the 25% bonus if the money’s in there!

3. Track Your Spending (The Honest Bit)

Take a look at your last 2 months of spending. Identify:

• Subscriptions you forgot about

• Takeaways you didn’t need

• Impulse buys you regret

  
  

Cutting just £100–£200/month = £1,200–£2,400 a year towards your deposit.

4. Set a Monthly Standing Order

Make saving automatic:

• Set up a standing order the day you get paid

• Send it to your LISA or a separate savings account

• Start small: £100/month adds up — and you won’t miss it after a while

5. Boost Your Income

Saving is easier when there’s more to save.

Consider:

• Freelancing on the side

• Selling unused items online, look at Vinted, Depop and similar sites

• Asking for a raise (seriously, it matters)

• Switching to a higher-paying job (even short-term)

  
  

Even an extra £200/month could fast-track your goal.

6. Use Windfalls Wisely

Birthday money? Tax refund? Work bonus?

Instead of splurging, split it:

• 80% to your deposit fund

• 20% for something fun (no guilt allowed)

7. Consider a High-Interest Account or Fixed Saver

Look for:

• High-interest savings accounts

• Fixed-term savers with better rates

• Or pair your LISA with a regular saver account

  
  

📌 Just make sure you can still access funds when needed for your house purchase.

8. Stay Sane & Celebrate Milestones

This isn’t all-or-nothing. Every £100 saved is progress. Treat yourself (within reason) when you hit a goal:

• Hit £5,000? Celebrate with a fancy dinner.

• Hit £10,000? Take a weekend off planning.

In summary:

Step	What to Do

1. Set a target

Know your deposit + extras total

2. Use a LISA

Free 25% from the gov

3. Track spending

Trim the fat

4. Automate saving

Standing orders = no excuses

5. Boost income

Side hustle or raise

6. Use windfalls

Be intentional

7. Choose good accounts

Maximise interest

8. Celebrate progress

Keep your sanity ✨