Welcome back to part 5 of the 40k house deposit challenge where I take the steps to join the property ladder as a first-time buyer in London. If you’re a new visitor, then feel free to look at the previous instalments to get up to speed on the current situation.

Challenge Intro
Update 1
Update 2
Update 3
Update 4

Why am I publishing this journey?

For the new readers just joining, this series is a way to track my progress towards a total saving goal of £40,000 which will allow me to purchase my first home in London. 

This not only keeps me accountable, but also provides actionable insight so other people can follow the same route which can be done as a regular 9-5 worker.

Monthly Thoughts

Investing all savings

It’s apparent that simply saving into a high street savings account isn’t enough to reach the goal and I’ll need to actively grow my money. In the past, buying a home as a single person wasn’t an extraordinary feat due to house price growth not outstripping wage growth.

However, nowadays it’s a pretty extraordinary task that will require extraordinary solutions. This means that I will need to take slightly more risks to grow my savings through investing and other passive income streams.

Earlier in the challenge, I’ve been quite clear about being fairly risk-averse however after reading more into investing it was more a lack of knowledge and experience which has caused this.

Investing all of your savings isn’t recommended but I will be adding larger chunks of money into this.

Value of a higher salary

I’ve been very vocal about focusing on your daytime job before trying to start side hustles and passive income streams. This is because you spend most of your time at work and it’s likely to be where your core competency skills are developed. It makes sense to develop yourself in this area to grow your salary.

Because when it’s time to get a mortgage, any bank will be using your salary to work out the multiple as to how much to lend you. Increasing your salary can be done in a multitude of ways including moving companies, promotions or moving into new careers all of which I have done.

Monthly results

Affiliate marketing – £337.96

Between the two affiliate marketing sites a grand total of £337.96 was made which is another nice month on month rise from £273.13 in April. There is a strong correlation between increasing the traffic to these sites and increasing the number of commissions that are generated.

Site 1 – Sleep site

This sleep site reviews sleep-related products such as duvets and mattresses and also has advice content. As mentioned in the previous update, the traffic for this site seems to be on a decline which has been reflected in another month on month decline in traffic however revenue continues to be generated.

Revenue: £46.30

Site 2 – Outdoor site

The second site is based around outdoor caravan and camping equipment. Due to lower competition in this space, we’re still seeing good growth with the site. Revenue increasing month on month to £291.66.

Despite no longer investing money in the site the residual effects are still experienced with a strong retention rate and time on site with users.

Revenue: £291.66

Investment Balance – £5,185.67 (+£3,650)

As mentioned earlier in the post, it’s time to be more aggressive in this area as a standard savings account probably won’t give me the gains I require. This £3.6k investment is a mixture of

  • Cashing in unused holidays days at work
  • Investing savings and affiliate revenue accumulated from February – May
  • Investing the money that’s no longer being used to invest in the sites
  • Returns from the initial few months of investing.

Total House Deposit Balance: £5,185.67 (+£3,650)

Closing

We’ve made some great strides this month. Although we’re still pacing around 50% behind the overall goal of £8,330 of where we should be. However, there’s a clear path here that will become clearer in the next couple of updates. Thanks for reading!


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