Saving for a down payment for a home can be a daunting prospect as this will probably be the most money you will ever have as a savings goal. There are a lot of really good methods to begin the savings process. In addition to saving for a home, these tips can be used for any large expense you have coming up. We have put together a list of some great ways to begin saving for you home. Reaching your financial goal will be easier than you think if you follow our great tips below.
1. Make saving a priority.
This may sound obvious, but it is easy to continue with small expenses here and there like dinners out and new gadgets. Saving for a home will mean that you will have to make some real lifestyle changes. Ultimately it is a long term commitment that you need to stick too. Once you have decided that you want to save for a home, it means that you will not be able to keep the same lifestyle you are used to.
This does not mean that you have to stay at home every night and eat spaghetti for every meal. You will just need to curb your impulse buying and focus on the things you actually need. Making a budget will help enormously.
2. Get rid of any debt you have.
If you have debt in the form of credit cards and loans, then you should make sure to clear these first. Trying to save, while paying interest on debts is wasting money. The best way to attack your debt is to begin with the smallest debt that has the highest interest. This will allow you to clear it quickly and also cut down on your outgoings. Once you have paid of this debt, you will be able to reallocate the money you were paying on interest to your other debts. As the interest goes down on your other debts you will be able to increase your payments, allowing you to pay each debt of much quicker than you initially expect.
3. Be honest, do you need two cars? Or a car at all?
Do you and your partner share a car? If so, take a long hard look at how much money the car is costing each month, and is it worth it. Can you share a car, or is it possible or more affordable for you both to take public transport. If it is at all doable, selling one or both cars could help your saving goals enormously. When calculating the cost of keeping the car, be sure to take gas and payments into account. Also think about maintenance costs.
4. Use your paycheque wisely.
If you have recently been given a pay raise at work, be sure to use the additional money and save it. You will not have to adjust your lifestyle at all. This is probably the easiest ways to save money without having any impact on your lifestyle. The same methodology applies to bonuses and extra commission.
5. Save where you can.
Finding the best deals is not only a great way to save money, it can also be a lot of fun. You may be surprised at how much satisfaction you get from getting something for much cheaper than you expect. Here are a few great ways to save!
Try to curb any shopping habit you have. Or wait until items are on sale.