A house is so much more than a collection of shingles, boards, concrete blocks and metal. A house is a place where you can love, laugh, raise a family and enjoy time with friends and your partner in life. It’s a place where you can truly be yourself. If you dream of building a home but you don’t have the funds to pay for it fully or put a deposit down, the following are some helpful tips that will help to put you in a better position financially.
Lower Monthly Expenses
Do you know how much money you’re paying out each month? You need to be financially aware and know your income and expenses. Examine your outgoings carefully and pinpoint any gaps where you could lower your monthly expenses. Is there a way to refinance your existing student loan into a new loan with a private lender? A student loan refinance calculator will help you visualize repayment options. Can you switch your energy provider so you enjoy cheaper rates? Are you paying for TV or magazine subscriptions that you no longer use? These are all things to consider.
Learn How to Budget
The next step is to create a budget that will work for you. To follow on from the point above, determine how much income you have and be clear on what expenses need to be subtracted. Learn how to budget by creating a spreadsheet or download one of the many budgeting apps where you can track every cent. Budgeting comes with so many benefits from effective money management and improved decision making to increased motivation and accurate planning.
Set Saving Targets
Not having a plan is like planning to fail. You need to have an overall target in mind and you need to break that down into smaller goals so you stay on course. Start off by deciding how much you need to save and when you’d like to have that amount in the bank. Then figure out how much you need to put away on a weekly and monthly basis to reach that target. Is it achievable or do you need to be a bit more realistic?
Open a Savings Account
It’s important to open a separate account for savings. Doing so will limit the urge to dip in when you need access to cash. Stay extra motivated by naming the account “my dream home” or something else that will help to keep you focused.
Do you have the time to take on an extra job? Or is there any overtime going in the company where you work? Are you creative and is there a possibility to monetize a hobby/craft that you enjoy? Perhaps you have a lot of things lying about the house that you no longer use? Is it time to have one big garage sale and make some extra cash? There are so many opportunities when it comes to earning extra money. Get your thinking cap on and you’ll likely come up with more than three ways to start growing your savings account today.