You’ve decided to purchase your first home – congratulations! However, saving for one of the biggest purchases you’ll make in your life is no easy feat. Aside from winning the lottery, there’s no realistic way to fast-track your savings, but there are ways to help you stick to your savings plan! Here are 5 tips to help you reach your dream of owning your first home:
- Be smart with your money
Yes, you will have to change your lifestyle and spending habits. You don’t have to be a genius to know that the most important rule of saving is to have a clearly defined budget that you can stick to! It’s all about priorities – is your mid-morning coffee at work every day more important than the joys and satisfaction of owning your first home? Making a budget is all about realising what expenses are essential, and what you can sacrifice to help reach your goals sooner.
- Sell what you don’t need
Is your garage bursting at the seams with things you no longer use? Take the time to go through all that junk you’ve been hoarding and hold a garage sale, or start an online shop on eBay or Gumtree! This will also make things much easier for yourself when the time comes to move into your new home as you’ll have far less clutter to deal with. You’d actually be surprised by how much you can make by selling all the things you no longer want or use. You know what they say – one person’s trash is another one’s treasure!
- Move back in with your parents
Paying off someone else’s mortgage while trying to save for your own home deposit isn’t exactly ideal, so why not consider moving back home to live with your parents or in-laws? While the thought of moving back home as an adult may make your skin crawl, it’s actually a very smart money-saving move! To feel more of an equal in the family home, offer to contribute to household expenses, or suggest paying board – even if your parents politely decline. There’s no doubt that these costs will be significantly lower than those you had before!
- Get a second income
Working a second job may not be something you want to do, but it may be something you need to do if you’re really serious about saving for your first home. By pulling beers at the local pub a few nights, or dedicating your spare time to freelance work, you can easily add a few extra hundred dollars to your savings account each week.
- Invest in a property as your first home
Why not consider making your first purchase an investment property? The area you want to live in may be out of your budget, but by purchasing a less expensive investment property in a more affordable area, you are giving yourself a head start on the property ladder. Owning an investment property doesn’t mean it’ll take you longer to afford the home of your dreams – quite the opposite! It’ll give you the chance to use your investment property as equity to purchase the home you’ll live in. Win-win!