If you have never saved before for anything significant, then saving for your first home deposit may seem an impossible task. Buying a house is easily one of the biggest investments you can ever make. No matter who you ask, friends, neighbors, family members, everybody will tell you the same thing – a home is expensive but it’s the best investment you can make.
With all this in mind saving for your home is not as hard as some people think; you just need to take the right steps. Some mindfulness and a bit of strategy will help you achieve your dream home and here are some tips to help you get started.
Open a savings account
When saving for something special like a home, it is important to have an account where you can set aside the money that you intend to use as a down payment. This account should be separate from other operational accounts. In fact, where possible, try opening the account in a different bank with favorable terms of savings such as better savings interest rates. To help you achieve your target, look for an account product that has limited withdrawals. Let your significant other know the account and any small monies lying in the house should be deposited there. Again, arrange for large deposits at least twice before you make an offer on a home. You can also take advantage of the Home and land packages that are offered by reliable developers- these will help you draw a perfect plan toward your savings. Purchasing a new home will make you eligible for the first home owners grant plus any additional offers that the developers are providing.
Create a budget and stick to it
Without a doubt, creating and sticking to a budget is one of the most important tasks you’ll need to complete to save for a deposit. Consider the deposit you’ll need to make, then sum up all of your realistic budget and stick to it. Do a calculation on your expenses; the utilities, groceries, and other routine expenses. Then, make a decision on how much savings you can afford. Here, you must be realistic so that you don’t strain your family and you still leave some for the odd night out. With a good budget, you will avoid extraneous expenses and therefore leave more for your home purchase.
Set it and forget it
Anybody who plans to pursue a serious dream like the one you have must be ready to make tough decisions. Set a direct deposit to your savings account; that would mean that on a regular basis, you’ll be increasing the amount of savings. Even the smallest paycheck can make a huge difference if you’re consistent in your savings. If you own your own business, you can also ask some of your clients to pay you via the savings account. With that arrangement, you need a few months and you have enough for your deposit.
Save any unexpected income
Sometimes you’ll have an amount of money that you receive from your side hustles and any other unexpected income. The tax refunds, birthday proceeds, bonus money from work and such. Direct that kind of money to your savings account – after all you had not planned for it. Saving unexpected money will boost your savings account without interfering with the money intended for meeting your needs.
Saving for your home is one of the best things that can happen to your life. Set a good savings strategy and very soon your dream will be a reality.