I remember when I was about to graduate university, the main thing I focused on was getting a job and making money. It was all I could think about then.

But I never thought about how exactly I would use or spend any money I made.

I knew I wanted to be rich and have enough money to retire at 35. And the only way I thought to achieve that was saving. And so I saved. But back then I did not have a clear saving strategy and I didn't know exactly how much I would need to save to be able to achieve my goals. Because I didn’t know I should have clear goals in the first place. So I just kept saving until the amount I saw in my bank account made me feel comfortable and then I would spend the rest.

Saving is important, but when it comes to achieving big goals, especially when they are many years away, we need to supercharge our savings.

Three reasons Why you should care

Forming this habit (of saving some of your income for your future self) now while you are earning little will build in you the habit you need to create wealth in the future
You get to play the "hero" to your future self. By creating the habit of saving and investing when you have little, you are setting yourself up to succeed in achieving your financial goals.
You are taking the first steps to create the future you want. The years pass by so quickly, and the actions we take today creates the life we will live tomorrow.

How to supercharge your first home savings

What's in a name?

The first step in supercharging your savings is to open a savings account and rename it with an emotion-filled name. A name that will motivate you to grow your savings and see that savings account flourish.

Names are a self-fulfilling prophecy, every time you read or say the name of your savings account you are declaring to yourself what you are choosing to create.

It also creates a visual in your mind of the home you will have, causing you to create and see your future.

This is a simple yet very important and crucial step in supercharging your savings to buy your first home. Don't skip this step.

So pick a super cool name you will love to read and see e.g. Elizabeth's 5* mansion.

2. Making things automatic

Make a commitment to transfer a fixed amount every month (which you can afford) on the day you get paid and

Set up automatic payments from your current account to your savings account. And never steal from your future self.

It is important to make set up a standing order because as busy people we will not remember to make the transfer every month.

Automatic payments remove the need to fight your emotions on a monthly basis, therefore, removes the need for you to have any willpower.

3. It's all about LISA: Open a lifetime ISA (LISA) account

The top 2 steps are the most important steps, however, opening a Lifetime ISA (LISA) will supercharge your savings for your first home because the UK government will come to your assistance by giving you a 25% bonus on the amount you put into your LISA up to £4000 per year.

NOTE: If I had a time machine, opening a lifetime ISA account is the best gift I would give my 18 year old self.

How to open a LISA

Anyone between the ages of 18 and 39 can open a LISA account with many financial institutions including building societies or banks. Find out more here. This is particularly beneficial to younger women because you can start saving and earn 25% bonus even if you are not yet ready to buy your first home. You could max bonus of £33,000 free if you open it at 18

What next

Open a lifetime ISA account and move the money into that account up to £4000 and get £1000 bonus.

Benefits of LISA: Bonus Accountability

This scheme ensures you remain disciplined and actually save towards your first home by penalizing you if you withdraw your money for any other reason apart from buying your first home or using it toward retirement.

Find out more about LISA, how they work and best buys here

Turbocharging your savings by investing in the stock market via a Stocks and shares ISA

Now if you have time on your side and intend to buy your first home in 5 to 10 years, you can Turbocharge your savings by investing your LISA in the stock market. This is done by opening a stock and shares ISA with an investment platform.

****************************************************************************

**JULY 2020 STAMP DUTY UPDATE: There will be reduced rates of Stamp Duty Land Tax (SDLT) for residential properties purchased from 8 July 2020 until 31 March 2021 inclusive.**

First-time property buyers purchasing:

Properties up to £500,000 pay Zero% Stamp Duty

The next £425,000 (the portion from £500,001 to £925,000) pay 5%

The next £575,000 (the portion from £925,001 to £1.5 million) pay 10%

The remaining amount (the portion above £1.5 million) pay 12%

If you are buying an additional property you pay 3% extra so…

Properties up to £500,000 pay 3%

The next £425,000 (the portion from £500,001 to £925,000 pay )8%

The next £575,000 (the portion from £925,001 to £1.5 million) pay 13%

The remaining amount (the portion above £1.5 million) pay 15%

How to Supercharge your savings towards your first home (plus July 2020 stamp duty update)