Before you start to look at your dream homes and before you even approach a mortgage broker or lender directly, there is the dreaded task of saving for your deposit. It doesn’t matter how much you need to save, the act of saving it is also a difficult one, given that you have to live your regular life, on top of saving for a deposit.
If this sounds like a situation which you are about be thrust into, below are some great tips to help you reach your financial goals faster.
- Rent is often the biggest expense in a household budget, and one that is easily reduced. While you may enjoy living in the area you want to buy, renting in an area slightly outside can see a significant reduction in your rent. Given that you will still be close and the situation is temporary, this can often be a great balance between maintaining your lifestyle and saving.
- Be sure that you are using a realistic budget. It is one thing to create a budget that has the best case scenario in it, right down to the last cent that you make, however, this isn’t a realistic way to plan. Instead, be sure to include allowances and take advantage of sites like the Groupon Coupons page for StubHub for your entertainment and apportion enough money for you to enjoy the food which you eat. If you don’t, you will find yourself blowing your budget and becoming unmotivated to continue.
- If you have multiple credit cards and you simply make the minimum payment on each of them, now is the time to change your behavior. Sit down and work out which of your credit and store cards are accumulating the most interest and focus your payments on that, then work your way down through the remainder of your cards. This is a great way to minimize the amount of interest you pay while helping to remove you from small debt faster.
- Is it convenient to drive to work? Yes. Do you have to pay a lot for gas and parking? Also, yes! As much as you might not like the idea of public transport, it’s accessible and it’s cheap. Switching from driving to the train for the bus can have serious positive impacts on your budget and reduce serious months off your saving projections.
- Take a look through all of your insurance and services policies and contracts and see which ones have expired or are coming up for renewal. While you may have been on the best phone or electricity plan two years ago, there is likely to be a much better offer available now which you can take advantage of, helping to reduce your expense each month.
Saving for a deposit is not an easy task, however, it is an achievable one. Along with these easy to follow tips, speak with friends and family to get their advice and ideas on how they saved money for their home deposit.