Deposit saving hacks: myth versus maths

Author - Helen Lovell Editor - Stuart Bowman

Last reviewed on 26th August 2025

Deposit saving myths

• Myth #1 - Ditch your daily coffee

• Myth #2 - Any savings account will do

• Myth #3 - The gym guilt-trip

• Myth #4 - Stop the subscriptions

• Myth #5 - Working from home can get me a home sooner

• Myth #6 - A side hustle will supercharge your deposit

Myth #1: Ditch your daily coffee 

The myth: We all love a latte, but is every sip really taking you one step further from your homeownership dreams? 

The maths: A regular coffee from a high-street chain costs around £4. To save your £12,150 deposit you’d need to skip 3,038 drinks. Even if you usually treat yourself to a drink every single day of the year, and cut out every single one of them, it’d still take you 8 years and 4 months to reach your goal. That’s a long time to go without your morning caffeine boost.

Myth #2: Any savings account will do 

The myth: If you’re struggling to save, it’s likely you’ve been told to stash away any spare cash however you can. But choosing the wrong account could be costing you big time. 

Did you know that, if you’re eligible for the government's Lifetime ISA, you could get a 25% bonus up to a maximum of £1,000 per year? 

The maths: To get your £12,150 deposit, you don’t actually need to save £12,150. You’d actually only need to save £9,720 and the government will top it up with a £2,430 bonus to get you to your target. 

So, if you started saving the maximum of £4,000 each tax year, it would take you two full years of maximum saving, plus a partial contribution of £1,720 in the third year to reach your goal. 

Myth #3: The gym guilt-trip

The myth: Gym memberships can be costly when you can do a home workout for free… right? But it’s no wonder you might disagree - particular if you’re someone who appreciates the structure, community and physical/mental benefits associated with going to the gym. 

The maths: You can expect to pay around £45 per month for a mid-range gym membership in the UK. That’s roughly £540 per year that could otherwise go straight into your deposit fund. But let’s look at it another way: to save your 5% deposit of £12,150, you’d need to sacrifice 22 and a half years of working out at the gym. Hardly worth it, is it? 

Myth #4: Stop the subscriptions

The myth: It’s often a ‘top tip’ that you could soon whiz your way to your deposit goal by cancelling regular entertainment subscriptions. But is this deposit saving hack too good to be true?

The math: A ‘standard’ bundle of Netflix (£12.99), Disney+ (£8.99) and Spotify (£11.99) comes to £33.97 per month, or £407.64 per year. To get to your £12,150 goal you’d need to cut all those costs for a whopping 29 years and 10 months. So, good news, you’ll have your deposit by 2055 just by cutting back on monthly entertainment! 

While it is sensible advice to cut back on subscriptions you don’t use, that really doesn’t mean cancelling every single thing. 

Myth #5: Working from home can get me a home sooner

The myth: If you ploughed all of your commuting costs straight into your savings, surely you’d be buying a home in no time? 

The math: The average office worker's daily spend is £23.10 (£19.10 on commuting plus £4 on lunch). In contrast, the full-time home worker's daily costs are £11.41 (£9.41 on additional bills plus £2 on a homemade lunch), which saves £11.69 for every day worked from home. Over a 232-day working year, this adds up to a significant annual saving of £2,712.

So, how long would it take to save a £12,150 deposit with these savings alone? It would take approximately 4 years and 6 months to reach your goal by ditching the commute for good. 

Myth #6: A side hustle will supercharge your deposit

The myth: Why focus on scrimping and saving, when you can boost your earnings instead? According to Visa, 45% of Gen Zs now have a side hustle, with 69% of these extra earners saying the primary objective is to earn more. 

The math: A side hustle can be a brilliant way to increase your income, but let's be realistic about how that money translates to your savings goal. Average earnings from a side hustle total £218.60 per month. Once you’ve accounted for tax, you’ll take home approximately £2,298.56 for a year’s hard work. 

Using just that profit to save for your £12,150 deposit would take approximately 5 years and 4 months. So while topping up your income can give your savings a steady boost, it won’t be an easy fix. 

So, what are the best ways to save? 

We all wish we could wave a magic wand and have our deposit appear. But saving is about willpower and sticking to savvy strategies. That doesn’t mean you have to get rid of all life’s little luxuries, though. As we’ve seen, it could take years of sacrifice to reach your deposit goal, when in reality lots of little cutbacks can get you there much sooner… and you can still enjoy your lattes. 

Here are our brokers’ top 3 savings tips:

• Set yourself a savings goal

It’s a good idea to know exactly how much you want to save in total, and how much you can afford to put away each month. This’ll give you a clear timeframe to work towards and will likely hold you accountable next time you’re tempted to splash instead of stash. 

Our deposit saving calculator is a great place to start if you’re ready to start your savings mission. 

• Pay yourself first 

If tracking your monthly spending feels too restrictive, why not try a savings-first approach? On payday, move your non-negotiable savings amount into your savings account (make sure this is a manageable sum that ensures you have enough leftover to cover all your bills and other essentials!). Then, whatever’s left once your monthly expenses have been paid is all yours to spend. 

This method is an effective way of making saving a habit, not an ad-hoc choice. For example, if you transfer £400 out of your bank account each payday, this equates to £4,800 over a year, or £14,400 over three years. This means you’ll have reached our earlier goal of £12,150 in just under three years.

•  Save, your way

Everyone approaches money differently and, the truth is, there’s no right or wrong way. You might prefer to use a budgeting app or a good old fashioned spreadsheet. You might find small but simple cutbacks easier to manage than an annual financial budget overhaul. Test out a few different saving methods to find the approach that works best for you. 

Looking for even more savings tips? Check out our guide on 20 ways to save for a house deposit.