Leaving our teens behind and facing up to the realities and responsibilities of modern adult life can be a scary prospect, especially in the current difficult financial climate.
Saving money on a regular basis can be tough. The rising cost of outgoings such as rent, bills and food shopping, as well as paying off any student debts, can often leave little money left over at the end of the month to put in a safe place. Hhowever, just a small amount saved here and there can go a long way.
One of the primary financial challenges facing young people is the ability to save a decent amount of money for a deposit on their first home. First-time buyers typically need to find enough money to put down a deposit of around 10% to secure a property in the current housing market.
Figures released by the mortgage provider Halifax revealed the value of an average property in the UK stands at £167,984. This means that customers who wish to borrow 90% of the overall property value will need to raise a deposit of around £16,800.
This is a pretty tall order for most people, even those with relatively well paid jobs, when you consider that wages have remained relatively static throughout the past few years.
A number of providers offer accounts exclusively designed to help first-time buyers raise funds to purchase a home of their own, however.
Setting up a 'new home' savings fund can help you focus on putting money aside, no matter how small. Doing so will reduce the chance of spending all your money by the end of each month and help to provide a clear goal for you to aim towards.
Of course, not everyone in their twenties wants to be 'tied down' with a mortgage. Many young people want to spend their money on fulfilling ambitions after graduating such as going backpacking or even working abroad for a short period.
Saving money prior to a travelling trip will ensure you are not solely reliant on using your credit card or borrowing money via a personal loan. Having an adequate savings pot will also provide a financial buffer in the event of any emergencies that may occur whilst away from home.
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