Do you dream of having your own home? A big apartment in the city? Or a cottage in the country? Start saving up with enough money to spare because start-up capital is essential to make your dream come true. Here are some tips to help you out!
Set a Savings Goal
First, make sure you have a clear picture of all the expenses you will need to buy a house. With this information, you can set a target for your savings:
• Look at the housing market to get an idea of the average purchase price for the type of home you are considering.
• You can get information on available loans at banks.
• Consider additional costs such as registration fees, deed fees, and notary fees.
Reduce Unnecessary Expenses
Your monthly balance isn’t enough to meet your savings goal? It’s time to cut down on unnecessary expenses! Here’s how you can do this:
Avoid Social Media
According to the European Consumer Payments Report 2018, 45% of 18-24-year-olds are tempted to buy more than they need on social media. Are you sure you can’t live without Instagram? If so, you can still remove influencers from your watchlist. Goodbye temptation!
Limit Online Purchases
The same study shows that 42% of 18-24-year-olds spend more money online. Many pay quickly and easily with a bank app, credit card, or cash on delivery. With this, it’s like shopping for free, but this can be dangerous for your bank account.
Analyze Your Recurring Payments
Take some time to list your recurring payments. Think about cell phone contracts, fitness, and other sports contracts, Netflix, Spotify, meal boxes, etc. Which ones do you need to turn off? Is there a cheaper alternative? Whoa, that’s a lot of money saved in one fell swoop!
Take responsibility for your spending and challenge yourself. For example, try not to go to a restaurant or buy new clothes for a month. Or set up a day once a week with zero income (make sure you already have food in the house; otherwise, it won’t be easy). Spend an extra 10 minutes at the supermarket to collect a bargain. And for once, prepare your own lunch instead of getting a ready-made salad or sandwich. Remember, many small things can make a big thing.
Manage Your Monthly Budget
• Take a look at your monthly expenses. For one month, write down everything you spent, including necessary expenses (bills, rent, groceries, …) Entertainment (restaurants, coffee, movie theaters, …) and clothing.
• Compare your expenses with your income and calculate how much you can save each month.
• Open a separate savings account to save for your home. This way, you won’t be tempted to use your savings for other purposes, and you can use a standing order to set aside money each month automatically.
Save for the Long Term
It may be a few more years before you want to buy something, but you already want to start saving? This can be done with annuity savings-type insurance. In this way, you can already enjoy the benefits of long-term savings. Also, when you buy a house, you can use your savings to pay for the remaining insurance.
Are you ready to start saving more money? If you do, find ways to have more income coming in every month.
• Try to get a promotion at work or work extra hours.
• Have you ever thought about working as a freelancer outside of your regular job?
• Students can work part-time on weekends and holidays to increase their savings.
• You can also make extra money by selling your old stuff online or at flea markets.
• Don’t expect thousands of dollars; every little bit helps.
Let us know if these few tips have helped you save money for your new home in the comments below!