Save to buy a home
REAL estate properties can be quite expensive and as an interested property owner, having your finances in check is important. If you’re renting, saving up to buy a property can seem out of reach, but that doesn’t mean that you can try saving for a deposit.
You would need to save quite a bit of money for a deposit and that can prove difficult while budgeting for rent, utility bills, and other living expenses.
But remember every little penny you save can help you get close to the final goal of owning your own home and what could be better than that.
According to homely.com, there are six tips that you could follow to help save for a home deposit more efficiently in the long run.
The article stated that the first thing you’ll need to know is how much deposit is needed and other extra costs that may come with buying a new home.
“To work out what you can afford ask yourself: ‘how much do I already have in my savings?’, ‘how much can I realistically save each month if I set my mind to it?’ and ‘do I have any family or friends that could chip in or would consider co-ownership?,” it read.
“When you have a figure in mind use a mortgage calculator to get an idea of how much you can borrow and what the monthly mortgage repayments would be like.”
The article said these factors would help determine what expenses to cut back on and the amount of money you’re aiming to save each month while also indicating whether it is a long term or short term savings plan. Create a dedicated deposit savings account
Opening a dedicated account for saving towards buying a home can be very motivating when you’re renting, as you’re able to watch your home savings grow month by month.
To get the most bang for your buck look around for saving accounts with low or no fees and ones that offer the best interest rates;
Get rid of unnecessary expenses Most of us often buy things we really don’t need, whether it happens to be a great piece of hand crafted furniture or paying for broadcasting apps that we don’t have time to watch. Cutting down on luxury items and and adjusting where you spend money can give you much more money to work with. You’ll be surprised how quickly little expenses here and there add up over a year;
Investment beginnings
Think about purchasing some shares or investing in a mutual fund. Depending on which shares you purchase, you can end up increasing your earnings at a faster rate than with a savings account with a good interest rate.
However, you should always pay your due diligence and do your research before jumping on any investment or ‘get rich quick’ bandwagon;
Cut the monthly rent
Rent is most likely one of the largest monthly expenses you’ll ever have and one way to go would be house sharing in a less sought-after area to split the cost of rent and bills with housemates while you save. Alternatively, you could move back to your parents home to fast track your ability to save or try house sitting for rent-free accommodation. Remember the living circumstances while you save will only be a temporary means to an ends and will make putting all the money you need to save into your deposit fund easier, not to mention faster; and
Keep utilities under control Some simple tricks such as turning off the lights when you don’t use them, turning off the tap when you’re brushing your teeth, hanging clothes outside rather than using the dryer, installing water saving shower heads, switching to appliances with better energy ratings and similar energy-efficient home solutions will make your life easier and help you save on utilities.