The FASTEST way to save for a House Deposit (Step-by-step Guide)
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- Опубліковано 5 сер 2024
- This Step-by-Step guide will show you the fastest way to save for a House Deposit. Getting on the property ladder is the toughest financial challenge you will face.
But in this video, I will show you how you can, at a minimum, go from £0 to £25,000 in 5 years. Along the way I’ll teach you how to:
Set Goals
Stay Accountable
Saving Strategies
Earning Extra Income
Lifetime ISA
Usertesing.com - www.usertesting.com/
Mturk - www.mturk.com/
Appen - appen.com/
Prolific - www.prolific.co/
Bank Switching - www.moneysavingexpert.com/ban...
r/Beermoney - / beermoney
00:00 Intro
02:36 Setting Goals
06:12 Accountability
07:34 Saving Strategies
09:49 Earning Extra Income
14:44 Lifetime ISA
DISCLAIMER:
This channel is for education purposes only and does not constitute financial advice - James is not responsible for investment actions taken by viewers. Please seek out a regulated advisor if you require assistance (whilst James is a financial adviser, he does not provide advice through this UA-cam Channel, which is not affiliated with his employer).
James Shack™ property of James Shackell
Copyright © James Shackell 2021. All rights reserved.
The author asserts their moral right under the Copyright, Designs and Patents Act 1988 to be identified as the author of this channel and any video published on it.
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Hello James,
Great vid, I came across with your channel by chance four days ago and I'm really impressed with the quality in all of them.... When I say all of them I'm talking literally I've watched 10 out 11 you got posted so far. I found great value in every single one, honestly they are gems hidden on UA-cam. Wish you the best on this platform and Keep it up mate, eventually will pays off!!!
Thank you so much! I love that! Especially as those are videos I was making when no one was watching, feels good that they’re useful! I certainly will, thank you for the support!
I would love your help please and the 6 months check up.
I am saving for my first house, and just hit 25k few days ago (yay!). Took me 2 years. I also saved it from a 25k salary and I rent in London. I can say I am very low maintenance lol. Now I am working on my salary to get a good mortgage, and maybe save another £25k. BUt living like this is not fun, cannot wait to be able to spend finally.
Wow, that is seriously impressive. But I bet it’s liberating to know that you can do it if you really need to.
Omg thank you for bringing faith ❤️
Wow, that is amazing and really inspiring.
you should start a channel. that's such an accomplishment and will give many hope!
Wow that’s amazing! How are you getting on?
I feel like I am in a lucky position for my young age. I am 21 and worked from home during 2020/21 on my placement year from University. They paid me a good wage of £21,000 and from savings before hand and after the year working I saved £17,000. Of course, living at home with my parents helped a lot as I have no rent (just board money which is still lower than £800 rent). However, the company I worked for offered me a job after I graduate. So I plan on continuing to save towards that £25k goal while also depositing money into a LISA. By the end of the year 2023 I will hopefully be near £30,000 at the age of 23. However, this is if things go well with work. Driving lessons is my biggest drain on savings but it is a must.
Just started getting my life together 4 years ago from rock bottom these videos are & the knowledge you share are invaluable so glad I found this channel well done
I already have a house. But, this video has given me great tips to continue exercising and not fall off the wagon! (e.g. make it public, be accountable, find a partner, etc.) You're a great motivator.
The £450k limit is really bad, average house prices have increased 24% in the last 5 years so the choice of housing will be even more limited - London is almost impossible (500k average for flats and 700k average for houses)
Amazing video as always. Another way to be kept accountable while saving, besides the methods you suggested, is to be part of one of those circles (e g Stepladder in London), where everyone puts a regular amount to a common fund , which gets given back to one of the members every month. (Not sure I explained myself haha)
Great content. I do extra tuition online and now invest most of it into my vanguard SIPP.
Awesome video! One thing I've also found that other videos mention is taking up a side-hustle. If there's another skill you have... By all means, charge for it! :D I happen to really enjoy the hobby of crafts and sculpting. I only recently set up my Etsy page at the end of last week and have already made some sales, which have gone partways to buying more materials to fund bigger projects, whilst the rest has gone straight into savings. Though I've now reached a point where I've realised, the returns you can get on a savings account can be horribly minimal, so I'm now going to start putting the money that would end up in there on a monthly basis into Stocks and Shares instead for the long-term future plan :)
Just came back to say thanks. I signed up to all the sites you mentioned and been earning quite a good amount in my spare time. Except for User Testing as I haven't qualified for any of their projects yet.
That’s good to hear!
i tried them too but i havent been able to. the usrtesting link has been giving error messages as well as the turk one......what is a good amount?
I've only just found your channel and the quality of content that you post is outstanding! So thank you for sharing. I've been quite lucky in finding a friend who we both hold accountable in our investing journey, both just starting our careers, and it has been really useful and have managed to push each other further than what we thought was possible a couple years ago
Good stuff. I’ve just got to the stage (at 32) where I’m now looking back like WOW how did that happen. The power of compounding just builds and builds!
@@JamesShack Oh absolutely! There's a reason why it's called the 8th wonder of the world haha. I think what's helped a lot too is that covid has restricted everyone's typical expenses from drinking, going out, travelling etc. It's certainly been noticeable!
Love your videos James, thanks
I moved in with my girlfriends parents and freeloaded off them untill we could save about £15000. We smashed it out saving like over a £1000 a month. I wanted to get to the goal as quick as i could as house prices were creeping up so fast.
Great video James, love the channel. You mentioned you will do a video on whether to save for a deposit in a savings account or investment account. This is a burning question from me and would be great to have your opinion on it please.
This was so handy, I always find myself getting confused with savings and budgeting so this was super helpful!
Epic, I'm glad it helped!
again brilliant video & content, thanks so much for this!! also looking forward to having your buddy on the channel to talk about mortgages, that would be extremely helpful, maybe with a focus for first time buyers? or how about fees to watch out for when getting a mortgage?
Yes absolutely. He's really opened my eyes to the reality of mortgages/ home ownership and all the fists involved!
wow what a great video, really wasn't expecting actual extra jobs to be presented, cheers
Glad you liked it!
James great content. Have you ever made any content on buy to let mortgages? We are interested in exploring this and wondered if I had missed that content?
I have no intention on saving for a house within my circumstances however the concepts in the video apply universally. Thanks for the helpful video! 👍🏼
It's my pleasure, I'm glad you found helpful.
What are your current circumstances? Have you improved 7months on
This is fantastic dude. Highly underrated channel.
Thank you so much!
Yes, budgeting weekly and monthly is definitely better and helps you to get to your goal quicker. 48 hours cool off period for me - works...for me! Then I just forget about it!!
Thank you James for the great content! All the input is enlightening. Just one quick question, do you know if these tactics can be applied outside UK? Are you aware of any account similar to LISA that people from the European Union can use to reach the same goal?
Love these videos
Thanks a Lot James. Great channel!
Much appreciated!
Yes I got to do this sooner than 5 years so ima put my full income towards it.
My god I wish I had this level of content and info freely available when I first started earning.
Yet another reason I’d love to be 21 again 😂😂😂
Yep, younger people are definitely getting much more interested in this stuff which is great. But it's also required because the state/your company will no longer look after you in retirement!
I'm definitely going to be checking out the earning extra income websites you mentioned, and telling my partner too! Mostly I generate additional income outside of my salary by selling my old belongings online!
did you? because i did and theyre all duds
Another great video, James! I know covid has been very difficult for many but it has meant that my expenditure has been significantly reduced and I've been able to save more than ever before. Just goes to show how crucial budget management is when it comes to saving
Absolutely. It’s been a real eye opener for what you could save if you really needed to. But come June 21st I know where we’ll be...🍺🍺 I've been budgeting for that!
Hi James! New to the channel. Great to find another qualified person delivering quality content. Trying to do the same myself. Really enjoyed the video.
Epic! I just checked out your videos, such high production quality, how the hell are you pumping them out do quickly?! I can only manage one every two weeks!
@@JamesShack ah thanks James, appreciate it. It’s a lot of work for sure! Just trying to break through the crowd!
It's tough getting going but there's very few qualified people on here. Well...very few that also have a personality! Lots of room for different voices and styles! I think this is the future for our industry. Financial planners have so much value to give, to so many more people. But they just need to give it in a format that people can connect with. Not just regulated face to face meetings that only serve the 1%. It's such a waste!
@@JamesShack totally agree 💯. So nice to hear someone with the same values. Well, you’ve got yourself a new subscriber in me James. Would be amazing to do a collaboration in the future?
Love this video James! I’m currently on this journey but planning on £25k in 3 years wish me luck 😅!!!
Good luck!
Hows it going!
Great video 👍
Great content! And you have the nicest voice!
Haha thanks Sara!
James, would you advise opening a vanguard or brokerage account to invest or first increase the % contributions into your workplace pension.
Brilliant James.
Thanks for the continued support. But I must ask... Birds Aloud? Where’s that come from?
Thank you for this great video and some gret advice...i done so many mistakes in all those years and spending money for nothing...and i can save a lot per month...around 500£ or 600monthly...gambling killed me so im hoping im on right path now...i started saving 2 months ago
Best of luck!
Hi James, thank you so much for the insights into the next step, I am planning to take. Just a question, what is the name of the camera you mentioned your friend borrowed you for the video?
Another great video James thank you for this. Would it be possible for a video on either paying down interest free debt Vs investing the money instead please? Also a video on credit ratings would be great I've just had to explain to my friend who is in his mid 30s about having debt to build up a credit rating etc as he's never ever had a any form of borrowing and only checked his credit report for the first time yesterday.
What type of interest free debt are you talking about? The rational choice, would be not to pay back low interest debt, and instead invest it. However investing is rarely purely on rational, there lots of other subjective factors at play, and many, if not most, people prefer to be debt free as quick as possible, which is a totally fine and reasonable decision. But yes, a very good topic for a video! I kinda talk about it in my Student Loans video.
@@JamesShack thanks James. I just meant for example say interest free credit cards etc I'll check out the students loans video.
Great video
Thanks for sharing
Well done James, your videos are of top quality mate!
Keep at it it will pay off, 10K subs in no time ;)
🙏. Thanks for the support, we’ll get there eventually!
You should of included cash back apps, I earn about £100 to £300 on utilities and online shopping from them. Great video keep it up.
Good idea, would you mind linking one here ?
Amex?
Which ones please.
Brilliant video, James! I had no idea about those other sources of income.
I used to do market research in little in-person groups but that seemed to dry up after a couple of years.
Yet check them out. r/Beermoney is where I found them all. If you can keep up a few on the side it really adds up over the 5 years !
Great video James! Could you please make a video on bonds and why they are important in a portfolio ?
Yes, bonds are very topical as we'll likely see interest rates start to shift back up which will have a lot of impact on bonds. But the main reason is for further diversification. I talk about it a bit in this video if you haven't seen it. ua-cam.com/video/lGQ9KyQq8Jw/v-deo.html&t
Loving the videos man, think you could do a video that compares the best stocks and shares LISAs?
Yes i will do
Where should i save for mortgage? ISA on moneybox or on joint account on my lloyds?
Thanks James! Could you share the maths you used to calculate how much extra income you could earn from those other sources? Am I gunna be working 4 hours an evening to achieve that? Great video though - discovered you on Reddit and I’ve been a fan ever since
Hi! I didn't do a /hr calculation, some have better /hr rates than others but sometimes they are less regular. Mturk and appen can be pushed more and you can get a decent hourly wage £6-10. Prolific should be done whenever you get sent surveys. User testing should be prioritised as it's a good payout but tests are harder to come by. Honestly get stuck into r/beermoney there’s a massive community of people who earn money like this.
Can you use a LISA for the payment of current mortgage without penelty and still gain the bonus, e.g. I already have a deposit, can I start using the LISA after I have the property. As it is still the first property. I ask as the wording is a little off "buying your first home" with a mortgage you're still in the process of buying your first home as it still belongs to the bank.
Hi James, I was wondering whether you have views regarding whether it's best to invest in a LISA or a workplace pension with salary sacrifice. I am not thinking of buying a house and I currently view my LISA more as a retirement pot.
Hi James, your videos are brilliant, so informative! Could you please do one on junior ISAs with vanguard? Like is it better to have one per kid or just one with a larger amount and divide it up later? Thanks so much!
One per child, otherwise the one child gets control of the lot at 18.
@@JamesShack thanks James, that’s great!
have registered to prolific a 4 months ago - not even ONE test request came until today (just checked it again). It is really crowded thx to the pandemic, a lot of older user complained about it.
I'm 23 and up to £57k but I want to keep going. Living with parents rn and working so I can put 90% of my income into LISAs
Great effort!
Another great video James!
Cheers George, I'm glad you liked it.
I find I review my budget and investment targets each month to ensure I am still on track to accomplish my goals. I let my budget slip into the background for several months and wondered why I stopped saving money and it was because I went back to my old habits.
Habits are very hard to kick, both good and bad!
Excited to hear your thoughts on the investing/savings account decision when saving for a deposit, and also from you mortgage advisor college!
Yep it's a tough one, but ill give you all the pros, cons and data to make up your own mind. In any case, I suggest investing a small amount so you can start learning ASAP.
Great video! I'm currently taking advantage of the Lisa bonus and boy is it a great incentive. Free cash from the gov is hard to find!
It's not really free cash since you're paying the gov in taxes and they're just giving some of it back 😂
Yep absolutely, gotta take those opportunities when they're there, they don't happen often!
@@Shmuklidooha while nothing is free in this world, LISA bonuses are still advantages not everyone has.
Great video. Great guidance compared to news articles 18yo buys house when his parents pay the deposit. I'm going to have to look into these extra cash ideas
Yet definitely do! Those numbers are punchy but definitely doable. The main lesson is that a little bit hear and there adds up to a lot over the 5 years + LISA bonus + buying with someone else. So when if you can only manage an extra £50 a month it’ll add up.
quality content
Cheers Nayema!
i tried to sign up for these links....none of them work. the usertesting link requested access to my entire screen and microphone, then gave error messages since then....i dont know, i dont trust the links given.......did anyone else try to sign up or have used them successfully????
James, would be super interested in your opinion on investment trusts VS index funds.
Investment trusts can be a cheaper way to get access to active investment managers. They also have more flexibility with what they can invest in i.e they can borrow money and invest in illiquid assets like private businesses. So they do have some advantages over a normal funds. However, they are still actively managed which means that they are likely to underperform index funds as a whole, but may see better performance in certain sectors, especially smaller companies and emerging markets.
Hi James , am I still entitled to put money in a LISA even though I have already exceed my ISA allowance (20K)?
Not this tax year I think.
@@josephbrennan370 thanks
Hi James, do we have to report the extra income we earn via surveys etc for tax purposes? If so, how?
Hi! If it's over £1,000 a year then yes. You do this via a self-assesment tax return, which you can register to do online here: www.gov.uk/log-in-register-hmrc-online-services/register
This only needs to be completed by the following January after the end of the tax year. So any income you earned today, you would have to pay tax on it at the end of January 2022. You just pay it through the govt website.
If you just need to report a small amount of income it's actually quite simple.
@@JamesShack thanks so much! You’re so helpful! 🙌🏼
I know your channel is different because you suggested something other than "Make a course and you'll make loads of money" which is easy to say if you have a large following that will buy said courses.
Hi James,
I know you can't give financial advice, but I'd like your insight into something. On what time horizon will investing into a S&S ISA trump depositing £4000 each year into a LISA? After using a compound interest calculator using a conservative 6% return, S&S return almost that of the LISA over 5 years with even further potential upside considering how conservative 6% is. I know the market cannot be predicted, but my aspiration is to be able to buy my house in one payment and rent until that goal may be achieved. This obviously cannot be done with a LISA as a mortgage must be taken out to utilise the savings. I cannot see myself buying within the next 4-5 years.
Thanks for any insight you can give.
Hi Liam you can have a stocks and shares LISA so you can invest in exactly the same stuff.
Explode your income it’s that simple.
I think it was Warren Buffet who said "Spend what you have after saving, not save what you have after spending".
4k a year into a Cash LISA for 5 years. If your totally risk averse and 5 years is the maximum time you plan to save then a cash LISA is suitable.
You'd have 25k plus interest.
Amazing content.
Amazin!
@@JamesShack ha!
What’s been your biggest challenge or achievement whilst saving for a deposit? What have you learned along the way?
£25k isn't enough for most people. You can only borrow 4.5x your salary before tax, maybe 5x with some banks, so you'll need a lot more than £25k for a deposit.
Only if you borrow the maximum
It depends where you live!
Matched Betting, can make £500 quite easily with minimal effort
Yep this is a legit strategy but I decided to leave it out just because it’s does involve gambling apps, even though it’s not gambling.
You refer to Direct Debit several times when what you mean is a Standing Order. DD is what companies set up to take payments from individuals such as utility bills.
Indeed!
Can i have a LISA at same time as Stocks and Shares ISA?
Yes but the £20k ISA limit each year applied across the two.
@@JamesShack thanks James! I was thinking about a dual strategy to maximise LISA and then all the rest in Invest. ISA
25k in 5 years? That’s pretty long !!! I can save up 25k in 2 years
25k isn’t enough for a deposit on houses these days. Need at least double this. I had to have almost double when I went for my property. Mortgage lenders are super strict.
Assuming that two people (a couple or friends) use this method, that is £50k. It also depends on where you live in the country.
It really depends where you live. My first house deposit was 8k on 90% LTV that was 8 years ago. Most recent deposit was £21k on 85% LTV. I bought on my own both times, Midlands then North West
@@bugattisteve I've only paid stamp duty once, and it was around £600. House prices are cheap where I chose to live, that was my point. Fully appreciate that there are plenty of places where you need a larger deposit. But where I live, you can buy a house with a deposit of less than £25k - I've done it 3 times, the most recent being last year :)
But it's not for everyone. LISA is only for up to 40s.
Can you make a video on how to avoid crypto tax?
Hi James, Yep I'll be releasing that very shortly but I'm just waiting for the Govt to release the new changes to CGT (either next week or the week after), so I can give you guys the best course of action for this year and the next.
@@JamesShack Cheers brother
Hi James, to save £25k in 5 years is easy. Do you have any method how I can make that in 5 months? Cheers
I hate this mindset if you’ve gotta have someone to do it with, you don’t need a partner or a mate just graft!!!
Its not a math issue its a emotional, control issue.
5 years 😂😂😂😂 thank fk I started when I first started working saved up for 1.5 when moved out
5 years i need to save that in 4 months or else im i a tent
Jesus. 10 years at this rate then 😅
It’s taken me 2 years only to save 6,000 :(
I hope your savings are going well . Never give up!
You spent that video trying to hit the word count mate, dragged it out, you didn’t make it simple for people who are bad with saving money. Spend less, save more, it is that simple
@18:09 Money buddies. yay! :) Some great tips in this video. +1 for checking you're savings regularly. It keeps your mind off spending it!
So true!