6 Ways You Can Save When Buying a Home
Have plans to buy your first home? We will be sharing some of the best ways to save money before you hop into the biggest purchase of your life.
So when home buyers, especially first time home buyers are buying a new home, there will be so much information for them to bear in mind, from choosing the right neighbourhood, to finding the right home seller that could meet up to your expectations. There are a number of techniques you can apply to make saving for your home a tad easier. Let us show you some tips you can use to save for a down payment on your future home.
Make a budget list and follow it
Start setting a budget for yourself every month by listing out your expenses. If you are not a notebook person, you can go to your Apple or Google Play Store to download apps that can help keep track of your spendings ie : Monni. Start by deducting at least 30% of your salary for your savings. After recording where you spent your money, you can identify how much and what you spent on previously, and from there you can start to adjust your spendings. With a clear budget, you can start cutting down on unnecessary spendings and only spend on what you need. But of course, you can reward yourself with good food and nice clothes once in a while.
Increase your salary
We all get it, it will take quite a while to save an amount of money, especially a down payment for your new home. Instead of just waiting for the end of the month for your usual salary, you can consider looking for other ways to increase the amount of money you will be receiving. Besides asking your boss or your superior for a raise, you could also start investing your money. Open up a small business to sell homemade goods, or products that are demanding in the current market. This way you could generate some side income and who knows, it might turn out to be your full time job in the future! Another way to increase your money flow is to take up freelance job opportunities ie : hosting, make up jobs, designing brochures etc.
Check out other employment options
If you think you are underpaid, you may want to consider switching jobs and look for a higher-paying job to help you save more money for your new home. If you are unable to ask for a raise, start looking for companies who can offer much better benefits and can pay you higher, because you deserve it!
Save up bonuses
Admit it, we all will splurge a little when we receive our yearly bonuses. Well not for you this time! This is the chance for you to save up as much as you can. Bonuses are one of the quickest ways to contribute more to your savings. The fact is that you have been living and surviving within your salary budget, you do not need to spend your bonus on unnecessary stuff. Use the money to help fund your home down payment!
Open a separate account for your savings
If you find it hard to separate your spendings and savings, you should definitely have a separate bank account for your savings. Schedule a monthly transfer of the amount you want to save into your bank account designated for your down payment. This will help lower down the chances of you over withdrawing. Just remember to set logically according to your expenses and commitments.
Renting out guest rooms
Are you living somewhere with high rent? If you are currently living in an apartment all to yourself and have extra bedrooms, you may want to consider renting out, instead of just leaving the rooms empty. By doing so you get to earn some steady side income monthly! You can either transfer the rental fee into your savings account, or use it to help pay for your current monthly instalment. By doing so you will get to save more and put them in your savings account! Alternatively, if your rent is too high, you may want to move to a smaller place temporarily until you get your new place.
If you would like to start saving for a downpayment, you should have a solid plan on hand. Talking to a top property agent can also give you an idea of how much you will need to save and how to get started with purchasing a property. Talk to us today!