Purchasing a property is a huge investment to undertake. In order to get on the property ladder and buy your new home, you first have to save!
When it comes to saving to buy a home, it is important to have a goal in mind. This will help you save quicker (as you will know how much you will need and by when) and keep you motivated.
To set a goal, you will have to look at homes for sale in the location you want to move to. This will give you an idea of how much properties cost in your ideal location, so you can decide how much you can save and how long it will take. Make a note of your goals and refer to them often.
Here are some tips to help you save for your home!
#1 Savings account
If you haven’t already, set up a dedicated savings account for your home purchase funds. This will help keep it away from your everyday spending account and decrease the risk of you using it.
Out of sight, out of mind.
It can also be very motivating to see your savings go up! If it is mixed into your account, it can easily get lost. If you are not planning on purchasing a home for a year or two, you could also look into accounts with interest.
#2 Reduce unnecessary spending
Time to review those costly habits and see where you can reduce them.
Do you eat out often? Do you really need 3 different streaming services?
Take some time to sit down and review your finances, and what you are willing to sacrifice. Ensure you are not paying for items that you no longer use, such as a gym membership or magazine subscriptions.
#3 Set up a standing order
If you get a regular income from your work, then it might be a good idea to set up a standing order. This ensures you are sticking to your saving goal.
It is too easy not to transfer the money or spend it on something else instead. Take your savings as seriously as you do any other financial commitment.
When was the last time you had a good old clear-out?
If you have accumulated a lot of items over the years, now is a great time to go through and declutter. This will not only benefit you when you move house (fewer items to move or get rid of while moving) but also benefit you financially. Many online platforms allow you to sell your old items, provided they are in good condition, and then the cash from the sale can go straight into your savings account. Although this requires a little more effort than the other tips, it can increase your savings and you will reach your goal much quicker.
Saving for a home doesn’t have to be hard. With small lifestyle changes here and there, you can efficiently save and purchase your perfect home!