Saving in general is not always easy leave along saving for a new house. Young couples are especially hit hard when they are paying rent. Some prefer to move in with their parents and add the money they would have otherwise paid rent to their home deposits.
For those who don’t have this luxury, it might seem impossible to save up for a new house. Luckily there are a few tips you can follow for putting a deposit on a new home.
- Make a budget and stick to it
The first step towards making that deposit for a new home is to make a budget in order to determine just how much you are going to save.
There are two ways people approach the concept of making a budget. Some will set money aside every week and then use what remains for rent, food and entertainment.
Others will prefer to set money aside for rent, food and entertainment and then whatever remains is sent to the savings account.
While many people will complain just how expensive property has become, once you begin to save, you will quickly learn that it gets easier with time.
When saving for your first home ensure you don’t go for that expensive bungalow at the beach straight away. Instead go for more affordable property and be realistic about how much you can put aside vs the value of property.
- Check your spending
Chances are you are spending more than you need to every month. If you make uber trips to and from work, try using the train next time. The extra money you would have spent on uber, direct this to your savings.
Check how often you buy food that you don’t end up eating only to throw it away in the bin. Can you cut on the costs and buy food that you are going to consume and finish? If so, direct the money to your savings.
If you go out quite often with your buddies, try having them around for a few beers instead of drinking all you can on a Friday night. And even while you do go out, avoid carrying your credit cards and instead carry cash.
Then there are the TV subscriptions. If you have Netflix, Amazon Prime, stan and apple music for example, pick your favourite from the list and subscribe to only this one. As usual, send this money to your savings.
- Consider your financial situation
It is always a good idea to not only consider the value of the property you are interested in but also how much you are currently earning.
Are you expecting a pay rise? If so, try maintaining your current lifestyle but send this extra cash to your savings. We are living in a gig economy. Find out if there is another way you can earn a little extra on the side. Freelancing, babysitting or walking the neighborhood’s dogs is a great way to make some extra cash which you can then send to your savings.