Doesn’t everyone dream of owning their own home, so they have something to call theirs? Buying a house is not only a prudent investment, but it also equips you with a lifelong asset. Saving for the initial deposit can seem like a daunting task, especially when you’re renting and have other household expenses to consider. So how do you go about saving up enough money to buy your own home? Here are some ways to help you save for a new home, while you live in rented accommodation. It may sound easier while penned down, but with some effort and discipline, you’ll be well on your way to buying your own home in no time.
Save, Don’t Splurge
Most people live paycheck to paycheck, splurging on items they don’t necessarily need in their lives. Remember that every drop in the sea contributes to the vastness of the ocean. If you need to buy a house, saving money should be a key strategy. Face it! Do you really need a new pair of shoes every week? These small ideas will help.
Order takeaway once a week, instead of every day and hone in on your hidden culinary skills to cook up an inexpensive storm in the kitchen.
Cut off any subscription service that you use rarely.
Get a cheaper mobile plan and use Wi-Fi wherever possible.
If you have unnecessary equipment cluttering your house, sell or auction it off.
Save on fuel by walking or biking small distances.
Turn off the electricity when you’re not using it.
Save roughly around 10 to 20% of your weekly income and gradually increase your savings as you become more prudent. You can even set up a separate savings account for your house to ensure that you have control of your finances. Keep your current expense account separate, so that you don’t cut into your housing savings to meet these expenditures.
Renting Changes
If you are really serious about owning your own home, do you really need to live in a two-bedroom apartment when a one-bedroom apartment will do just fine for you and your partner? Moving from a two-bed to a one-bedroom can save you between $100-$150 a week on rent. You can even consider moving to a place where the rents are relatively less expensive than what you’ve been paying all this time. Saving a minimum of $100 per week translates into savings of over $5000 every year − money that would be useful for paying a deposit on a new home. If you live alone, consider sharing your apartment to cut your rental cost and utilities in half.
Invest Wisely
Consider putting a part of your income towards a high paying savings scheme without taking any undue risks. Remember that the goal here is not to double or triple your money, but to get a little bit of extra cash to add to the pot. You can even choose a bank saving scheme with a slightly higher interest rate to reap the benefits of better paying financial products.
Coupons and Deals Can Bring You Savings You Didn’t Expect
Look out for coupons and deals that can help save you money. Use coupons to save a little extra on your day-to-day necessary expenses. However, spend responsibly and do not overspend just because the deals look attractive.
These small, but powerful tips will take you one step closer towards your dream of becoming a homeowner.