5 Ways to Save for a House Deposit
Two years ago, I purchased a condominium unit for myself. After all the financial ups and downs I endured in those two years, I will finally be able to live in my home, sweet home by next month. Pay the house in full. That is the best advice I can give you when buying a house. Like myself and most people, I know you probably can’t afford to do that. Don’t despair, I have a second best advice. Pay the largest deposit you can pay. Paying the largest deposit you can afford will let you save tons of money. The bigger your deposit, the smaller the loan you need to take out to pay for the remainder of the purchase price of the house. Small loan means small interest.
Man Of The House by Dewayne Neeley, on Flickr. This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License.
Tips on How To Save For a House Deposit
- Buy a house you can afford. — I hate to burst your bubble but please understand you can’t buy a mansion with a helipad at the rooftop if you are working in McDonalds with minimum wage. Don’t be overly optimistic. It’s pointless saving for a house deposit if you can’t afford the house in the first place. Evaluate your financial capability accordingly. Be honest. Know the costs involved. How much is the total purchase price, deposit, loan and interest? For how long do you need to pay them?
- Make a budget. — Now that you know the costs, it’s time to make a budget. List down all your expenses and income. Make a breakdown of your budget in terms you can easily grasp. For example, you may want to create a weekly, or even a daily budget. Making a budget will give you a better understanding of where you stand financially and will let you plan your financial strategy appropriately.
- Increase your income. — Now that you have your budget, the fact that your finances is tight is oh, so easy to see. What are you to do now? Increase your income. Find a higher-paying job. After all, I know how much you hate your boss so finding that higher-paying job shouldn’t be such a burden. If finding a new job isn’t practical, as an alternative you may find ways to supplement your income. Use your talent. There is always an opportunity for you to make money, all you need is resourcefulness and commitment. I spent countless days thinking of how I can make extra money. I had many ideas of how I can make money but as I explored them, I discovered flaws in them. Until I decided to start blogging for money. I couldn’t be less enthusiastic telling you of how well my blogging for money is turning out to be! Trust me, all you need is resourcefulness and commitment.
- Reduce your expenses. — To maximize the benefit of your efforts in increasing your income, reduce your expenses. Seek and practice money-saving tips, there are lots of them everywhere. Since time immemorial, money-saving tips have been popular and so I won’t be enumerating them here. Pinpoint your biggest expenses and find ways to reduce, if not eliminate them. Be creative, be bold before you grow too old. Saving money is fun, can I get an Amen?
- Develop a good saving plan. — Just saving money is not enough, you must save money with style and sophistication. This is where banks can be your best friend. Banks offer good services and products that will help you get the best from your money-saving efforts. One prime example of making the money you save work for you is by having a cash ISA in the UK.
Sticking with these tips I hope to see you, all smiles and aglow at your housewarming party.
Did I miss any tips? Let me know in the comments.
