- Increased taxes, living costs and inflation are leaving Britain’s young people struggling to save
- Research shows that those who save more, spend more
Avocados, Netflix subscriptions and takeaway coffees have all been offered up as explanations for first-time buyers’ property ladder problems, labelled as luxury items that savers should think twice about. GoCompare Home Insurance reveals whether cutting out these small costs could help you buy a home.
By cancelling their Netflix subscription, it would take a first-time buyer in Britain over 156 years to save up a 5% house deposit.[1][2] Amounting to a small saving of just £72 per year, potential buyers would need to find an additional £10,540 if they were to amass the total cost in 10 years.
Further research from the insurance comparison site found that over a quarter (29%) of the lowest savers (putting away no more than £100 a month) never drank takeaway coffee.[3] Meanwhile, only 16% of the highest savers (setting aside £400 or more a month) said they abstained from this expenditure.
Similarly, almost 30% of the lowest savers said they did not drink alcohol, compared to just 15% of the highest savers. Likewise, nearly a third (28%) of the lowest savers almost always cooked. This amount fell to less than a fifth (17%) among the highest savers, showing that those who can save more, often also spend more.
Matt Sanders, Mortgages Expert at GoCompare says: “In the current economic climate, the goalposts for young people trying to afford a house are moving further out of reach, with first-time buyers needing to save for an average of 10 years for a deposit.
“Our findings clearly disprove the idea that first-time buyers are unable to save due to reckless spending habits. Going forward, we must focus on providing realistic advice to empower young people with their finances, helping them to achieve financial independence and security.
“The first step is to have a goal in mind - through using tools such as GoCompare’s mortgage deposit calculator you can work out how much you’ll need to save. Then consider any government schemes that may benefit you. Being strict with your disposable income will go some ways to help you save up, but there is no need to sacrifice all of life's small pleasures.”
To get the most out of your money, it’s important to ensure you’re getting the best deal possible. Using GoCompare car insurance to compare deals saves customers up to £257[4]. That’s almost four years of Netflix subscriptions - without having to sacrifice anything.
Shopping around is the best way to save money without missing out, take advantage of all of the comparison services available at GoCompare.