Saving for a house deposit in the UK can be a daunting task, especially with the rising cost of living and you may be looking for ideas of how to make money on the side while saving for a house deposit.
Making some extra money on the side of your main job can help you achieve your goal. In this blog post, we’ll explore some options for side hustles that can help you save up for a house in the next 5 years, while also paying rent on your current property. We’ll also discuss the cost of living crisis in the UK and provide tips on how to make the most of your extra income.
The Cost of Living Crisis in the UK
The cost of living crisis in the UK has been a major issue in recent years. The cost of living has been rising faster than wages, making it increasingly difficult for people to make ends meet.
Housing costs, in particular, have been a major issue. The average house price in the UK reached £256,405 in January 2022, according to the Office for National Statistics (ONS). This means that saving up for a house deposit can be challenging, especially when wages are not always increasing at the same rate, especially if you’re also paying rent on your current property or have a family to fit into a property.
However, there are plenty of side hustles you can explore to help you make some extra cash. In this blog post, we’ll explore some options for side hustles that can help you save up for a house in the next 5 years.
How to Make Money on the Side While Saving for a House Deposit
Freelancing: One way to make extra money is through freelancing. If you have a particular skill or expertise, you may be able to offer freelance services in your spare time. This could include writing, graphic design, website development, or consulting services. Freelancing allows you to work on your own schedule and can be a great way to earn extra money while pursuing your passion. Sites like Fiverr and UpWork are easy to use and to help earn extra income.
Renting out a spare room. Another option is renting out a spare room. If you have a spare room in your home, you could consider renting it out on Airbnb or another short-term rental platform; or even just a car parking space if you’re near a station. This can be a great way to earn extra money, especially if you live in a popular tourist destination. However, you should be aware of any legal requirements and regulations before listing your property on a short-term rental platform including tax implications, so do your research here.
Selling products online. Selling products online can also be a lucrative side hustle. If you’re creative or have a knack for finding unique items, you could consider selling products online. This could include handmade crafts, vintage clothing, or other unique items. You can sell on platforms such as Etsy, eBay, or Amazon.
Delivery driving. Delivery driving is another option for making extra money. With the rise of online shopping and food delivery services, there is an increasing demand for delivery drivers. You can sign up to deliver groceries or food for companies such as Deliveroo, Uber Eats, or Just Eat. This can be a great way to earn extra money on a flexible schedule around family life or another job.
Dog walking or pet sitting. Finally, if you love animals, you could consider offering dog walking or pet sitting services. This can be a great way to earn extra money while also getting some exercise and spending time with furry friends. You can find clients through word of mouth, online classifieds, or pet-sitting platforms such as Rover or Pawshake.
There are plenty of side hustles you can explore to help you save up for a house deposit while paying rent on your current property and I have dozen of YouTube videos and more blog posts on the topic.
From freelancing and selling products online to renting out a spare room and delivery driving, there are many options to choose from depending on your skills, interests, and availability.
Budgeting To Save For A House Deposit.
Now that you have some options for making extra money, let’s talk about how to make the most of your extra income. It’s a great idea to create a budget to identify areas where you can cut back on spending and allocate more money towards your house deposit savings.
- Track your expenses: Keep track of your expenses to get a better understanding of where your money is going. Use a budgeting app or spreadsheet to make this process easier.
- Set a budget: Set a budget for your monthly expenses, including bills, groceries, and other necessary expenses. Stick to this budget as much as possible to avoid overspending.
- Cut back on unnecessary expenses: Look for areas where you can cut back on unnecessary expenses, such as eating out or subscription services you don’t use.
- Prioritise saving: Make saving a priority by setting a savings goal and making regular contributions to a savings account. This can help you reach your financial goals faster.
- Review and adjust your budget regularly: Review your budget regularly to see where you can make adjustments or improvements. Be flexible and willing to make changes to your budget as needed to ensure that you’re on track to meet your financial goals. (And don’t forget to celebrate when you reach a goal!)
Incorporating these budgeting tips can help you save more money, which can be put towards your house deposit or other financial goals. Pop over to my YouTube channel to see tonnes of money saving and house buying videos to help you with your house buying journey in 2023 and beyond.
This video shows all the costs involved when buying a house in the UK and the things we have learned since we bought our home last year.
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