Peer to peer investments put your capital at risk, and you may get back less than you originally invested. Returns are not guaranteed if the borrower defaults.
You can save more towards moving out by spending less on:
Travel costs: If you drive, see if you can make your car insurance cheaper. Car sharing or switching to public transport could save you money too. Travel by bus or train? Check if a railcard could cut the cost and book in advance to save.
Mobile phone: On a contract? Check if you can switch to a SIM only deal to save money: or haggle for a cheaper price.
Entertainment: Cinema tickets, nights out, Netflix, drinks at the pub, they all add up. Here is how to spend less on entertainment without becoming a social outcast.
Writing a budget to find out where your money is going and where you can cut costs is a great place to start too.
If you do not want to cut out regular cinema trips or your TV streaming services, reduce your costs by getting the best deal.
If you work full time your salary is likely to be your main source of income, so asking for a pay rise could really help your efforts.
There are lots of other ways to earn a little extra too:
Paying rent is good because it will prepare you for your financial commitments when you move out, but it will slow down your savings efforts.
Speak to you parents about how much rent you pay, and whether some of it could be put towards your moving out fund.
Sharing how much you are saving each month with your parents can also be a good idea, as it can help them see that you are working towards your goal.
Getting a decent return on your savings could help you move out quicker, so it's worth finding the best savings account you can:
Regular savings accounts can offer more attractive interest rates but you will only be able to save a set amount each month, normally between £100 and £500.
To be able to move out you need:
Enough money saved to pay upfront costs like your rental deposit and agent fees
To earn enough money to pay your ongoing costs, like rent, council tax and utility bills
These amounts will depend on your plans after leaving home, but common ongoing costs include:
Rent or mortgage
Gas & electricity
Broadband & phone
The upfront costs will be smaller, although you will still need to save up for a rental deposit which is normally around two months' rent.
There are also letting agent fees to pay, including the cost of reference checks, and the cost of moving your belongings to your new home.
Some landlords also charge you for a professional cleaning service or a holding fee to keep the property vacant until your contracts are signed.
You will need to save up enough money for a house deposit, which is usually at least 5% of the property value.
You also have to pay mortgage fees, solicitor fees and other costs when you buy - which means the upfront cost will be quite substantial.
If you are worried the cost of paying everything yourself is too high, then there are ways to make savings:
Look at smaller properties: Whether you plan to buy or rent, you will have to pay more for larger properties. If you need to bring the cost down, you might need to look at studio flats or ditching the spare room.
Rent with someone else: Sharing the cost of renting with a flatmate can make it much cheaper and more affordable. If you have friends who are planning to move out soon, speak to them about teaming up, alternatively look at rooms in flat shares.
You have to pay Council Tax whether you rent or buy, but you could get a discount in some cases, e.g. if you live alone, so check if you could save.
If you are still unsure how much rent you can afford, visit the Money Advice Service.
This is best avoided. Starting off living independently with large outstanding debts is going to make things harder at a time when you will be adjusting to paying your own way.
If you think you might need to borrow some cash to get you started, you might need to consider waiting a little longer before moving out on your own.
As you approach moving day there are plenty of things to sort out before you leave home.
It's a good idea to write a checklist of all the companies and people you need to notify of your new address, so you don't miss anyone off.
Whether you are looking to move up the property ladder, downsize or just relocate we can help you find the right mortgage when you move home.
Get on top of your finances, stay out of debt and make the most of your money with this ultimate checklist. Here's what you need to do to get control of your cash.Read More