If you're planning on buying your first home, get saving! The bigger your deposit, the better. You will instantly have equity in the property (ownership rather than debt) and you will be offered a much more favourable mortgage deal with lower interest rates and lower repayments.
Aim to save around 10% of the property's value, or 10% of your overall budget. An average house in the UK now costs more than £170,000*, so your deposit could run to several thousand pounds.
* According to the Land Registry
Set yourself a time limit
Give yourself a time limit in which to save, but if house prices are rising, the quicker you save the better. The key to saving money is living below your means and investing what's left. Open a high-interest bank account and put all the money you save into that, so that your money is earning for you while you sleep.
Make money using the rent-a-room scheme
If you rent a property at the moment, do you have a spare room you could sub-let? You can make up to £4,250 per year tax-free under the government's 'rent-a-room' scheme. However, read your tenancy agreement carefully to see if this allowed and get written proof from your landlord that he is happy to let you sub-let - you might find that he or she wants a slice of the profit!
Sell your talents and yourself
Can you make things and sell them on eBay or at a local market, such as jewellery, greetings cards or candles? Or have a spring clean and sell unwanted books, CDs and DVDs on eBay or Amazon. Why not register to take part in market research evenings? You can earn an average of £50 per night being part of a focus group. Register at www.sarosresearch.com and start earning.
You could even try out drugs or cold remedies if you contact local research organisations and hospitals - making in the region of £200 in a weekend by taking part in trials. Or what about babysitting, dog-walking, ironing or working in a local shop on Saturdays or your local pub at the weekends?
Start stoozing
Stoozing is a way of making some extra cash from credit cards if you have patience and discipline. Take out one of the many 0%-interest credit card deals and 'borrow' as much money as they will allow by having it transferred to your existing credit card. Get the money now on your existing credit card transferred to your bank account.
Then put it in a high-interest savings account for the time that the your new card is at 0%. You will need to pay the minimum payment each month but just before the 0% period ends, make sure you pay the rest back - keeping the interest you have made on it. Then close the card down, open up another card at 0% and do it all over again.
More money saving tips
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Take a packed lunch to work - you could save around £1,250 a year.
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Give up smoking. A 40-a-day smoker would save around £3,500 in a year. Plus, life assurance on a mortgage is cheaper for non-smokers.
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Cut down on takeaways. Two family takeaways per week, at £20 each, equals £2,080 a year.
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Cut back on your satellite TV package. Switch to a basic bundle of channels and save £300 a year - or make do with the standard terrestrial channels.
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Cancel your gym membership. Get an exercise DVD for home workouts or take up jogging, swimming or cycling.
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Cut down on alcohol. Ten pints of beer a week can cost around £1,300 a year. Work out how much you spend on alcohol a year and try to at least halve it.
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Shop smarter. For fresh food, go to a market rather than a supermarket. Only buy loose fruit and vegetables and never bother with pre-prepared meals.
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Bypass 'finest', 'luxury' or 'premium' foods - they're just another way for the supermarkets to overcharge you.
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Move back home if at all possible - stash the rent you would have been paying to a landlord.
This article was last updated on 28 February 2007