Do you know what I did this morning? I unpacked the last box from when we moved into our current home! Woot woot! (Never mind that we moved in about a year-and-a-half ago…I’ve been busy, okay?!) Once that box was empty, I took a moment to be thankful for our home – this one and the two we’ve had previously! There’s just something about…HOME.Key Tips On Saving For Your Deposit When Buying A Home! #saving #homeowner Click To Tweet
For many, buying a house might be a dream. The cost of real estate is always on the rise; hence, you may be tempted to think that you can never afford to purchase that home you dream of. As tricky and challenging as it might be, it is not an impossible task. There are many clever ways that you can save up for your house deposit slowly. Here’s how:
Always have a budget
Often the biggest excuses people have for not being able to save up for a dream house is because their budget isn’t enough. However, the reason why saving is almost close to impossible is that you aren’t working on a budget. When you write down all your expenses and have a budget in mind, you can see where each amount is going to; hence, you can better manage the same.
An expert tip by finance experts, like your friends from Gumtree Real Estate, is for you to allocate a portion of your monthly inflow earmarked for house savings so that you are sure that no matter your expenses during the month, you have a specific deposit for your house. For example, putting up a fixed 10% to 15% of your monthly budget for house deposit savings will already get you somewhere.
Keep your goal in mind
When you have a dream house, you have a price in mind as well. Every home always comes with a price, and this amount should be the goal that you set your mind to. When you are conscious of this amount, it is like an objective that gives you the driving force to save up for the same. For example, you are looking to save 100,000 USD. When you spend an extra dollar you have for something that isn’t a necessity, you wake up to the reality that the 10 USD for that shirt on sale that you aren’t sure about is one step closer towards reaching your 100,000 USD goal.
To learn more about financial goal-setting, you can visit Extras.
Have a strong support system
Whether you are buying a home for your family, or as a single person, you still need a support system to help you out. This support system is highly instrumental in helping you spend wisely so that you can save more for your house.
For example, if you are always in a company that pressures you to go out regularly for drinks or go shopping, it becomes harder for you to save for your house. On the reverse, if you are with a group that understands your priorities, they can help you snap back to reality and remind you that this particular amount should go to savings instead.
Determine a deadline or a timeline
Financial goals and budgets are achievable when they are time-bound. When you have a deadline, you are more conscious about working harder towards achieving the same. This timeframe can also help you effectively divide your budget as your goal into smaller amounts periodically.
For example, you want to save up 100,000 USD in five years for your first home. This means that every year, you have to save at least 20,000 USD, or 1,700 USD a month. Of course, your amount and your timeframe should also be achievable and realistic based on your financial capacity. In this manner, too, you can better control your monthly expenses because you have better determination, as well as the right amount of pressure, to achieve your financial goals.
Find an excellent realtor
One of the most important key players in purchasing your home leans towards finding an excellent realtor that you can trust. Realtors and brokers are the ones who are dealing directly with sellers. Hence, it is through them that you can avail of any possible discounts that the seller may generously offer. Do not be shy to ask about this, as it can help lower down the cost of the estimated amount that you are looking to save for your house.
Open a separate savings account for this purpose
Another expert tip that you can follow is for you to open and set aside a separate savings account for your house deposit. Choose a savings account that has high returns, such as a time savings deposit, for example. A time deposit works best for you, as you have no plans of using the money in the next five years or so, and this type of savings account also has higher interest returns.
The greatest benefit that you can have out of opening a separate account for this purpose is that it becomes easier for you to monitor your progress. As you do not mix it up with your other finances, you can track your savings more effectively and check if you are reaching your periodic goals or not.
Now that you have these foolproof and easy tips for saving, that dream house of yours will no longer remain as a stagnant vision: it can soon be a reality for you. Whenever saving can get hard, remember that the best reward is always that home that will now be yours. A house is still a worthwhile investment, and it is an asset that can last you for your lifetime.
Are YOU a homeowner? How did you save?
Due to the amount of comments from all of my wonderful readers, it is not always possible for me to respond to each one. However, I absolutely do read them all, and if you’d like to address something specific, or have a question for me, please don’t hesitate to email me at Kristen@theroadtodomestication.com. I will respond to your email as soon as possible! Thank you for visiting the blog!