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Can You Afford To Buy Your First Home?

For the longest time, buying a home was one of those things that was just sort of treated as an expected part of life. It was up there with a career, a marriage, and all of the other things that make up the stereotypical path of someone’s life. Of course, as time has gone on these things have become less and less necessary to live a happy life but when it comes to buying a home, something else has happened. There are just as many people who would love to buy a home as before, but it’s become more and more difficult. The reality is that with house prices constantly going up and wages stagnating, many people end up feeling as though the idea of actually being able to buy a home is little more than a fantasy. But is that actually the case? Of course not! The truth is that it’s still entirely possible to buy a house, even if it’s not as easy as it once was. You’ve just got to be prepared to put in the effort to understand the process, and make sure that your finances are in the right position to do it. With that in mind, here are just a few things to consider when trying to figure out if you can afford to buy your first home.

The mortgage

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The most obvious thing that comes to mind when people are thinking about buying their first home is the process of getting a mortgage. After all, unless you happen to be extremely lucky, you’re very likely not going to be in a position to buy a home outright. (If you are then what are you doing reading this?!) The issue for a lot of people is that the process of getting a mortgage can be rather scary and complex. After all, you often end up having to wade through stacks of paper with all kinds of confusing clauses and small print. Not only that but your success in actually applying for a mortgage can often depend on a number of factors. Using something like a home loan eligibility calculator is a great first step in checking to see what kind of mortgage you may be able to take out. That way, you can figure out any potential changes that you might need to be able to buy a home and what it could end up costing you in the long term.

The deposit

One of the biggest barriers to a lot of people’s ability to buying a home is very likely to be the deposit. For many people over the years, they’ve been able to buy a home with incredibly small deposits that made buying a home and getting a mortgage a whole lot more accessible. This is something that has become even more pronounced in the era of COVID-19. Where previous generations might have been able to get a home with a 1% or 2% deposit, there are many lenders who won’t accept less than a 10% deposit in the current era. When you combine that with the rising house prices then it’s clear that being able to afford a deposit is a much bigger challenge than before. However, just because something’s a challenge doesn’t mean that it’s impossible. The key is to start putting money aside as soon as possible. If buying a home is something that you’re really committed to then every spare bit of money that you have should be put away. Find new ways to budget to allow you to save more and every bit of extra cash that comes in should go in the pile. It isn’t necessarily going to be a fast process, but it’s the only way to really afford a deposit in the current era.

The fees

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It often comes as something of a nasty surprise to a lot of people when they realise just how many fees are involved in the process of buying a home. If you’re not aware of the fees that come with buying your first home then you could end up in some serious trouble. You have to consider mortgage fees, a valuation fee, a survey fee, a potential broker fee, your solicitors fee, and a whole lot more. Now, most of the time these are things that you will be taken through at the start of the process but you need to be aware of these kinds of fees well in advance so that you don’t go into the process assuming that you can afford a home when you simply can’t.

Your credit rating

As strange as it might sound, it’s not just a matter of having the money and actually being able to afford a home, you also need to be able to demonstrate that you can afford the payments in the long term. The way that this is calculated is through your credit rating. If you have a poor credit rating then it won’t matter whether you have the money for a deposit or not. Things like paying off your credit cards on time and making any loan payments in full is the best way to ensure that your credit rating is always in the best possible shape.

The truth is, while it is absolutely possible to afford to buy your first home, it would be a mistake to assume that it’s something that’s going to be easy to do. A home is likely to be the most expensive purchase you ever make and that’s not something that you should take lightly. If you want to buy a home then you’ve got to be willing to think ahead. It’s the kind of thing that you need to plan for and make changes in your life if you want to be able to afford it. The mistake that a lot of people make is that they assume that they can’t buy a home when what they actually mean is that they can’t buy a home “right now.” By planning ahead, managing your finances, and working towards a goal, you’re going to be in a far better position to buy your first home regardless of your personal circumstances.

4 Smart Things Rich People Do That You Should Too

Are you interested in building up your finances and ensuring that you are in a stronger position? If so, then it does make sense to explore what rich people are doing with their money. Don’t forget, they’re rich for a reason and if you can learn their secrets, you will be able to emulate their level of success.

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Diversify

First, you should make sure that you are diversifying your income as much as possible. Experts agree that everyone regardless of their total income should have a few different avenues of profit that are part of their financial set up. In other words, you do need to make sure that you have a side hustle. This doesn’t have to provide you with a massive level of extra cash, but it should give you enough money that you can fall back on it if you ever need to. 

Speak To A Financial Advisor

Next, you should make sure that you are speaking to a financial advisor. The right financial advisor will look at your current portfolio and help you assess where you should be spending your money. They will work with you to guarantee that you make smart financial investments from day one, regardless of what your goals are. They’ll work with you to build up your goals too and make sure that you aren’t in a position where you don’t know where you stand financially. Experts like Glen Clemans of CGC Financial are always willing to help those who want to get their financial portfolio in order. 

Hire An Accountant


Rich people always have an accountant on their side. They come in handy for a variety of reasons. An accountant will be able to make sure that you are budgeting the right way and not leaving anything out of your calculations. They might even be able to find a little more money in your budget so that you have extra cash to spend on the things that you want. An accountant will also be useful when you need to pay tax. They’ll help you find legal ways to pay less tax so that you can keep your costs under control.

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Invest In Property

Finally, once you have built up enough money in savings, you should be considering what investment options are available to you. One of the best is always going to be property. If you look at the rich and famous, you’ll notice that they always have multiple houses and the reason for this is simple. It’s one of the safest investment options that you should definitely be exploring. You might think that you need a fortune to invest in property, but that’s not the case. Instead, you just need to find a smaller home, buy it and build up your portfolio from there. 

We hope this helps you understand some of the key steps that rich people do take with their finances. If you follow in their footsteps, you are always going to be in a far stronger position with your money. 

4 Savvy Ways To Invest Your Leftover Cash

One of the best ways to build wealth is to reinvest your leftover cash. So, if you find that you regularly have a rather sizeable sum left in your account when your next pay cheque lands, then you ought to start doing something with it and investing your money in profitable, sensible ways.

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1. Investing In Classic Shirts

The market for classic sports shirts and vintage kits has boomed recently, with millennials and Gen Z desperate to don the names of their heroes and idols from the 80s, 90s and early 2000s on their backs. Sites like Classic Football Shirts charge high prices for rare or vintage football kits, so if you have a little extra cash lying around why not see if you can find some popular jerseys for cheap either online on sites like eBay or in your local charity shops. Alternatively, you might decide to look to the future rather than make a quick buck and purchase a couple of popular sports shirts from today that could grow in value in the future.  

2. Buying Cryptocurrency 

The recent rise of cryptocurrency has seen the price of the like of Bitcoin, and newcomer Dogecoin, skyrocket. Don’t miss out by buying Dogecoin, Bitcoin or another cryptocurrency today, as you could be sitting on an absolute goldmine in years to come. There is plenty of risk attached to this strategy though; there is no guarantee these stocks will rise. That said, if you have the spare cash to invest, then you should be able to take the gamble and hopefully come out better off.

3. Put It Into Your Pension

Fancy retiring early? Then this could be your route to achieving just that. Upping your pension contributions is the ideal, tax-free way to save away your leftover cash and truly begin investing in your future. Your pension pot will only grow bigger with inflation, and the taxman can’t touch it, so this is a surefire, foolproof way to store your money away and seeing it grow with little effort. Result!

4. Get On The Property Ladder

Finally, the most expensive of ways to savvily invest your extra cash is to put it towards a deposit for a house. Getting on the property ladder is tough but investing in real estate is one of the most secure and potentially lucrative investments you can make. There aren’t many quick wins in investing in property unless you get particularly good at buying and flipping homes thanks to quick renovation jobs, so you might have to be a bit more patient to see a return on this investment. Nevertheless, putting your money into property could quite easily earn you a pretty penny, and it is an excellent way to invest your leftover cash. 

Ultimately, there are plenty more ways to invest your money that we haven’t covered. However, these four tips are some of the savviest ways you can use up leftover cash to make a profit. Whether it’s something as cheap as picking up a classic football shirt, or something much pricier like buying a house, investing your money in any way is better than just letting it sit there. 

How To Understand Car Depreciation

Depreciation affects nearly everything, and for cars, it can be very critical when you want to resell. Once you drive a car out of the car lot, its value depreciates alarmingly. Experts estimate that brand new cars depreciate by up to 20% when they are driven from the dealership to the home. There has been quite a misconception about car depreciation, and this article aims to bring a level of understanding of the whole issue.

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Understanding Depreciation

Depreciation is the term that refers to the difference in the value of a car from the time you buy it to the time you intend to resell it. Studies from CAP Automotive indicate that average depreciation costs as much as three times what you spend at the petrol pump.

Although the depreciation level varies from makes and models, generally, the range is between 15-35% in the first year. By the third year, depreciation rises to 50%. According to motoring cost experts, it is better to choose a car that retains its value than focusing on fuel economy. This means you may recoup much more if you decide to sell your car.

What Affects The Rate Of Depreciation?

Different things affect the depreciation of a car, but here are a few of the general reasons why some depreciate more than others.

Mileage

This refers to the number of miles that your vehicle has been driven. In essence, the more miles you have on your car, the less value your car holds. The average mileage is about 10,000 per year.

Reliability

Cars come in various grades of quality, and some are more reliable than others. Based on usage, experience, expert reviews and others, some cars for sale have built a reputation of reliability over the years. So, for instance, a Mercedes may be more reliable than a Toyota.

Ownerships

The more owners a vehicle has had, the more unreliable it seems. This is because if it is assumed that if it were durable, it would not be sold as much. So the fewer owners a car has, the better.

Overall condition

This plays a vital role in the ability to resell your car. Any damage to the body, exterior, interior, or malfunctioning features will definitely decrease your car’s value.

Service history

You should ask for the service history complete with receipts as it is a very important detail before purchasing a car. The service book must also indicate that all servicing was done as recommended by the manufacturer. With this, you can tell how often or what fixes the car has undergone.

Length of warranty

This ensures that any resell goes smoothly; most people are quite sceptical when it comes to warranty. Three is a good deal, but some manufacturers are now offering up to seven years which can really aid the sale of your car.

Tips to reduce depreciation

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Even though depreciation is bound to occur, there are a few things you can do to slow down the rate. Firstly, try not to exceed the average mileage. Also, service and maintain your car regularly and desist from making race modifications. Lastly, sell before the new models are released.

Realistic Ways To Build Wealth

Many of us want to be rich but we have rather unrealistic ideas about how to attain that. We might purchase lottery tickets every week in the hope that our numbers might finally come up, or we might use betting sites in the hope that we might win a big cash prize.

Now, there’s nothing to say we won’t become rich using these methods, but the chances are rather slim. Thankfully, there are other, more realistic ways to build wealth, and these include the following. 

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#1: Invest (with a diversified portfolio)

Have you started investing yet? it might be that you haven’t. People are generally put off the idea because they don’t know where to start. They also fear losing money in market downturns, and are worried about receiving bad investment advice. To be honest, we can understand these concerns. However, investing is one way to build wealth, so for those wanting to improve their financial future, it should be considered. 

There are many ways to invest, of course. You could trade in stocks and shares, invest in real estate, or build wealth using a crypto trading website. It doesn’t have to be one type of investment over another, because the general consensus is that you should diversify your investments if you can. This way, you have a greater chance of earning big money, as even if the market takes a downturn for one type of investment, you might still see an upswing in another. 

To get started (if you haven’t already), check this investing guide for beginners. Then look online for more information, as the more knowledgeable you are, the greater your chances of success.

#2: Boost your income with a side-hustle

The more money you can bring home each month, the better, right? You will then have more to put away in a savings account, and you will build your wealth from your extra income and the accumulated interest. So, consider the types of side-hustle that suit you, and do whatever is necessary to get started. 

What kind of side-hustle could you begin? Well, as we have already established, investing could be your side-hustle. You could also start an online business, sell items for a profit on eBay and other eCommerce sites, rent out a room in your home, or do one of a million other things, as there are loads of ideas online. We discussed one passive income business idea here. Do whatever will excite you, as the more happiness you gain from your side-hustle, the more likely you are to stick with it. 

#3: Move into a better-paid career

If you can’t quite make ends meet (or put savings away) because of your current career path, it might be that a move into another career could be right for you. Admittedly, you might have to start on the bottom of the career ladder again, so you might not earn the big bucks right away. And you might have to go back to school too, be that online or offline to pick up a few new qualifications. But the rewards will be worth it because if you do choose a career path that gives you the opportunity to build wealth, you will be putting yourself on firmer financial footing. 

Here are some of the highest-paying jobs in the UK.

Finally

So, buy a lottery card if you want to. And make the occasional bet if you can afford to do so. But to make your dreams of building wealth come true, try more realistic avenues. We have suggested just a few options but continue your research online and around this website to learn more.