I saved £25,000 in a year with help of ‘minimal’ money challenge to buy £250,000 first home – how you can do it too

BUYING your first home on your own may seem an impossible goal in the current climate.

But Soph Adams, 26, managed to buy her £250,000 first home in Hereford by sacrificing everything and moving back into a box room with her mum to save money.

Soph, who works in property development, hated that she was paying rent and wanted to be a homeowner by the time she turned 30.

When she turned 25, she decided to give up luxuries like holidays and expensive clothes and get real about home ownership.

Many people find it difficult to save for a deposit over time, so Soph knew if she gave herself a firm deadline to save for her first home purchase she’d perform better. 

So, she decided to swap renting a posh apartment for moving back into a box room at her mum’s for one year – after which she wanted to have her whole deposit saved.

This allowed her to set tough monthly savings goals and celebrate when she met them.

Soph also adopted the “monk” or “minimal living” method for the year, giving almost all luxuries in order to put all her cash towards her deposit.

Moving in with a parent is not a luxury everyone has and Soph feels very grateful to have had somewhere to sleep while she squirrelled away her savings.

But giving up spending any money and sticking to a strict savings challenge also contributed to Soph getting on the property ladder so quickly, and anyone can start a challenge if they want to.

There are money-saving challenges suited to all budgets and lifestyles.

Some ask you to put just pennies away, like the 1p savings challenge which could help you put away up to £670 a year.

Plus there’s the 52-week challenge, which works by getting participants to put aside £1 for the first week, £2 for the second, £3 for third and so fourth, until the end of the year.

Different schemes will work best for different people depending on their circumstances – the idea is to make saving money more manageable.

While it might seem easier to stash small amounts in cash, you should think about whether a savings account would be better suited.

This is because you won’t earn any interest on savings stored as cash.

Soph used her twelve-month deadline to view houses every week and ensure she chose the right home for her.

The Sun sat down with Soph to see how she went from being a saver to a homeowner for The Sun’s My First Home series.

Tell me about your house

It’s a three-bedroom semi detached house on the outskirts of Hereford.

It has a garage and off street parking in the front garden which was important for me.

The house is laid out over two floors.

When you walk in the front door there is a hallway with a large living room and a big kitchen. 

It also has a utility room for washing machines and a dryer.

Upstairs there are three double bedrooms and a family bathroom

It has an established garden with an astroturf and a shed.

There is a back extension which I plan on turning into a snug

I wanted a property I could redecorate .

My first home is forty years old. The attached garage and back extension provides space so I can create more rooms in the future.

The potential of extra rooms from little effort was a huge selling point for me.

How did you decide on the location?

I spent twelve months looking at houses every week to find the perfect first home to purchase.

My dream home had a list of features that were definite, and features that I could live without.  This helped me quickly say no to some properties.

I wanted a house that was twenty to thirty minutes from my family and work but in a quiet area.

This is because I work in the city and have a hectic lifestyle, so I really value my downtime  and peace is important to me.

My house is near a nature reserve and my bedroom window overlooks a field of horses.

There are a mix of families and couples living here, which I love.

I have the views I craved and easy access to work.

How much was it?

My house was £250,000 and I put down a 10% deposit of £25,000

I took out a mortgage of £225,000 over 40 years with a fixed-rate of 5% over two-years .

I  used a broker who was critical in helping me find the best deal. 

My broker is an old friend who took me through all steps of the mortgage negotiation and  purchase.

My broker was upfront about the ups and downs of the process.

He even kept looking for better mortgage deals after I’d made a decision which showed his commitment.

I chose a  two-year fixed interest rate because it allows me consistency in mortgage repayments while I settle into my new home.

I did not want to be locked into a five year term because my broker and I think better mortgage deals will be available by the end of 2026

I choose a 40 year mortgage for my starter house as it means slightly lower monthly repayments.

It also means I can choose to cut the time off the mortgage if interest rates drop.

It’s easier to cut  the length of a mortgage rather than  add years and it gives me flexibility,

How did you save for it?

I saved up the deposit over twelve months.

I work better under pressure and I used the deadline deposit savings schedule to force myself to get enough money for a down payment within a certain amount of time.

I knew a deadline would make me knuckle down and sacrifice as many bad spending habits as possible.

Like many people, I would start putting money away then plan a holiday and use the funds for that.

I gave myself a deadline and then competed against myself to get the deposit in a set time period.  

It’s a brilliant incentivisation and keeps you focused  on your deadline target.

I was willing to sacrifice every luxury to get a three bedroom house at 26 years old ,

I gave myself a time limit  and living like monk for a year ensured almost every penny I made went toward my deposit

DIRECT DEBIT SAVINGS

Being on a deadline meant I knew I needed to save a minimum of  £2,100 a month if I was going to hit my target of £25,000 in a year.

I set up a dedicated savings account and had £1,000 a month go directly from my wages into the account.

The direct debit was critical to  rapidly  building the  base of a deposit without thinking about it.

BOXING CLEVER 

I moved back in with my mum who had an empty box room in an effort to shrink my outgoings.

If I wasn’t living near a relative I would have rented the smallest and cheapest room in a  group house. 

I paid my mum £400 a month rent including utilities.

By moving home I cut £800 off my outgoings and the cash I saved went into the bank every month.

NO BUY YEAR 

I love fashion and have been spending an average of £500 a month on clothes, shoes and designer bags.

I vowed to buy no new clothes for a year and put the money I usually spent on clothes each month towards clearing a credit card. 

This ensured my percent credit score remained perfect.

After month two, I put  the cash I would have spent on clothes into my  house deposit fund.

MONK METHOD

The box room I was living in had enough room for a single bed and a lamp.

Living like a monk in a tiny room forces you to realise what  you really need and don’t need.

I took a capsule wardrobe to my mums home  and carefully went through the remaining items.

The process was an eye opener and made me realise now many clothes I had purchased and never worn.

I work up to fourteen hours a day and a friend offered to list all my clothes including designer labels on eBay and Vinted. That made another £2,500 and I was astonished.

COSMETICS CASH

My declutter made me realise I had a huge makeup collection.

I put together a basic kit and gave the rest of the products, many I had never ever tried, to my friend to sell on Vinted.

I didn’t buy any new makeup for a year and that saved another £1,000.

SAY NO TO HOLIDAYS

I love holidays and weekends away, but I said “no” to trips away to make my new home a funding priority.

The £4,000 I usually spent on holidays each year instead went to the house deposit.

MOTOR TO A DEPOSIT

I was paying £400 a month for a car on finance.

I sold the car, repaid the finance company and bought a cheap runabout for £2,000.

I also made sure on at least three days a week I took the bus or train.

EATING YOUR DEPOSIT

I love eating out and was spending up to £250 a week on food and going out.

I checked my credit card statements and realised I could save money by cutting food, so I set myself a food budget of £30 a week.

I prepared meals once a week and ate what I had in the freezer or my mini cupboard which meant I didn’t waste anything.

I made my own coffee in a flask to take to work in the mornings and I didn’t go to restaurants or cafes for a year.

When I explained I was on a mission to save a house deposit in twelve months, my friends not only understood when I said no to invitations,they cheered me on.

PRESENT SAVINGS

I love being generous  for my family’s Christmas and birthday gifts.

Last christmas instead of spending £5,000, I saved it and bought or made small thoughtful  gifts.

I made my mum a birthday cake for her birthday and she told me it was one of the best gifts ever.

HOW DID YOU AFFORD TO FURNISH IT?

I had £3,000 in a standard savings account to spend on furniture.

I added any money I had left over each week  from my current account to that.

I waited until I got the keys before making any big furniture purchases.

Do you have any advice for first time buyers?

It’s critical you realise you will need sacrifice while saving to buy your first home

It is almost a fullt-ime job so I approached it  like I would a business deal.

Working to a deposit deadline worked for me.

It sounds simple but looking at your weekly expenditure and making cutbacks is critical.

First home buyers should also have a clear savings goal for the time they give themselves to get a house deposit together and keep track of it.

Give yourself a small treat like a bottle of wine or an afternoon with friends when you hit significant savings milestones like the first £5,000.

I used the frustration of living in a box room to inspire me to save harder each day.

Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.

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