10 Tips to Save Money For Your First Home
Purchasing your first home is a monumental step into adulthood. After all, a house is probably the biggest purchase you’ll make in your life and, it’s where you’ll live for years to come.
Since most first home buyers are young adults, a common challenge is saving up enough money for your deposit. Besides consulting home builders such as First Home Buyers Direct for suitable financial solutions or first home buyers grants, there are many things you can do to get your dream home quicker.
Here are 10 useful tips to help save money for a deposit for your first home.
1. Open up a Dedicated Savings Account
It’s tough to save money for something unless you have somewhere specific you can keep your savings. Opening up a dedicated account to save up for your home deposit encourages you to save and allows you to easily monitor your funds.
Besides, it’s much more exciting when you can see your home deposit fund grow before you. Look out for savings plan which offer high interest to speed up your saving process.
2. Save First Before Spending
Most people spend their paycheck first and then save what they have left, which causes them to save less than they’d like to. The best way to save is to start by putting money away for savings, and then amend your monthly budget if you have to.
Try consulting a WA home finance provider to determine how much you need to save so you can plan your budget more accurately.
3. Have a Monthly Budget
By mapping out a budget, you can get a good picture of your earings and match this against your expenses, and then tweak them accordingly. After preparing a budget spreadsheet, people are of surprised by the financial commitments they have.
However, this is a crucial step in planning your savings and expenditure – you can easily cut down unnecessary spending and properly keep track of your money.
5. Reduce Your Subscriptions
In the modern world of endless subscription services, it’s easy to have too many. If you really want to save up for your first home, take a look at all your subscriptions and cancel some.
Do you really need Netflix, Disney Plus, Amazon Prime AND pay TY? You can also cancel your gym subscription and find other ways to work out; by going jogging, doing body-weight workouts, or going for free exercise classes.
6. Save Your End-Of-Year Bonus
If you’re lucky enough to get an end-of-year bonus, put it all into your savings account instead of splurging on a holiday or expensive gadget. Of course, don’t do it at your expense; if you have debt repayments you’ve been putting off or if you really need to destress, it’s fine to use some of the money – just try and save as much of it as you can.
If you have a commission-based job, you could set aside your commission just for your home deposit.
7. Save Money On Rent
Chances are, your rent is your highest monthly expenditure. Try finding a roommate or move out to a cheaper place.
Alternatively, you can move back in with your parents until you save up enough to move to your new home. Of course, discuss it with them first to make sure they’re fine with it. It’s not a desirable move for many, but it can be worthwhile in the long term if it gets you into your own home.
8. Sell Your Stuff
More often than not, we have too many things in our house. Depending on what you have, you can sell the items that you don’t use anymore and make a considerable amount of money.
You could even have a valuable vintage or collectible item sitting at home. Online sites like Ebay and Gumtree are ideal for this.
9. Increase Your Income
Increasing your income is one of the fastest ways to save up for your home purchase. You could get a second job on the weekend, have a business on the side, or use the skills you have as a freelancer.
You could also upskill and make the effort to get a new, higher-paying job; just consider all your options thoroughly before deciding. Having more income also makes it easier for you to secure favourable terms on a home loan.
10. Stretch Your Money While Shopping
You don’t have to stop buying all the things you like. In fact, you can take advantage of offers at your local stores and stock up on groceries when they’re on discount, or only shop during a sale. Look out for cheaper brands for things such as paper towels, cereals, and dishwashing liquids.
However, if you absolutely must have your favourite brand of chocolate, don’t deprive yourself; it’ll just make you unhappy in the long run. The key here is to be more aware of what you buy and how you can get more value for your money.
Saving up for your first home doesn’t have to be a struggle; you can achieve it with careful planning and discipline. If you have any difficulties or doubts with your home-buying process, just reach out to the people around you that you trust, or get help from a reputable home finance service provider.