Everyone would love to be able to purchase their own home, but these days it seems to be getting more and more difficult to save enough for the deposit, let alone to pay off a mortgage. Saving for a home can be done, but unless you are very rich, it usually takes some serious budgeting efforts on your part which will affect everyone in the family, not just yourself.
There are many ways to save money and setting a goal over some years will make it easier. If you can’t stick with budgeting for this small time length how will you do it for the 20 or more years it takes to pay off a mortgage?
Here are some tips to help.
- If you can save 20% of the purchase price as your deposit you won’t have to pay lenders mortgage insurance and it will also save on the amount of interest you will pay over the lifetime of the loan.
- You can get free financial advice and help for budgeting, so make use of it. Generally speaking, you cut back on eating out, going out for entertainment and entertaining.
- You can cut out magazine subscriptions, gym memberships and buying expensive clothing.
- Cutting back on mobile phone usage will save most people a great deal. Remember, the older generation had a good life without being joined at the ear to a mobile device. If you can’t do without it completely, try and get a cheaper plan.
- Also see if you can get a cheaper deal for insurances, power and other utilities.
- Hiring movies to watch at home is much cheaper than going to the cinema. Invite friends over and make microwave popcorn for more fun.
- Take your lunch and drinks to work instead of buying them. You’ll save heaps.
- Take the bus or train instead of a taxi – but only if it’s safe. You may also be able to walk or ride a bicycle, depending on where you live.
- If you use a car for school runs or to get to work, see if you can arrange a car pool to save on fuel.
- Add a warm jumper to your clothing in the evening instead of putting the heater on, or turning it up. Fleece pants will also keep you warm. Choose heaters that are known for not using too much power. Some cost a lot more to run than others.
- Wash in cold water to save on more electricity.
- Find cheaper rent or move back into the family home. This is one of the best ways to save money, but offer to pay your living expenses and contribute the extra power and water used.
Applying just some of these tips will soon see you in your new home.