How to save for your 20% deposit when buying your first home
Saving 20% First Home Deposit. Having your own place to live in is one of the major accomplishments that every person might be aspiring for. It gives you the entitlement of property, the feeling of fulfillment that you finally got your own place and of course, privacy. But buying your first home is not as easy as you think it looks, especially when you need to settle the first 20% deposit of the total contract price of the house.
Saving 20% First Home Deposit – Tips
Here are some tips on saving 20% first home deposit for your starter house:
- Cost cutting. Eliminate unnecessary expenses from your everyday life. If you have the opportunity to pack your lunch, do it. It will save you a huge amount of money instead of dining out. Carpooling with friends and family members is also an effective way to save on gas, toll fee and car park expenses.
- Avoid overspending. Look for quality value in cheaper prices. Learn to read food label and do not just put everything in your cart.
- Declutter. There are many things in your closet you don’t use but can be turned into fortune. Holding a garage sale will help you declutter your house and raise money. You can get rid of your unnecessary stuffs while raising money for your new house.
- Save up. Financial experts always encourage employees to save 20% of their monthly earning in a savings account. The remaining 80% of your money will be divided in all your monthly expenses. Remember, earning – savings = expenses.
- Settle your debts. It will be very unfortunate and impractical to move in a new house mortgage if you have plenty of debts. Use only one credit card and cut the rest. Remember, you will be assuming a new house mortgage and there will be more things to prioritize now.
- Create a weekly or monthly budget. Set a budget and stick to it. This will help you track your expenses and scrap out the things you don’t need. You can create a list when going for a grocery to keep you from shopping for the unnecessary.
- Analyse you expenses.When you’re saving for a house, you need to weigh how much you earn against how much it will cost you to buy a home, providing that you still need money for stuffs like food, car, medicine, clothing and an emergency fund. As you analyze you expenses, you will be able to think of other methods to raise money, which is the next tip.
- Raise more money. There are numerous ways today to increase your monthly income apart from your regular salary. You can render tutorial, online jobs, catering services, and among others.
Saving 20% First Home Deposit – You can do it!
Saving for a new home can be of a financial challenge that you will face especially when you begin to claim an independent life. However, you need to think that there are things you will surely let go when saving up for a deposit. Well, everything will be paid off once you finally got your own house!
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