There are a couple of things in life that cost more than most—having a baby, buying a car, and buying a house! Almost everyone needs to save up for these things since not everyone has a few thousand hanging around.
Aside from the cost of the deposit and the mortgage over time, many people have bad credit and need to know things like how to get a VA loan with bad credit or how to improve their credit score.
Deposits can run from a couple of thousand to more than $30-$40 thousand.
No matter how long it takes, saving up for a deposit is possible, even with small payments going into your savings account. Slow and steady saving is the way to go.
Nothing works without a budget that makes sense for how much money you make. Often people make budgets that are too restrictive and unmanageable. However, looking at where your money goes every month is the starting place. Understand all the little amounts you spend add up – but most importantly, where you spend them.
Highlight who is spending what and where that doesn’t contribute to the household and the joint goal of buying a house.
You can find templates for budgets online that can help you make sense of your finances and can help you to find just how much you can save.
Reductions or cutbacks
It’s not just bad habits getting cut back that can make a difference in how much you can save. If you regularly grab a latte while running errands, a few dollars could go into the savings pot.
The biggest issues for most people when it comes to overspending or not being able to save are getting taken out a little too often or impulse buying. The internet is packed with targeted adverts to show us what we think we want or need. If you’ve been looking for anything from walking boots to neon yellow lipstick, you will start getting adverts for them. These adverts greatly impact how likely we are to make impulse purchases.
For anything that the house needs to keep functioning, this rule doesn’t apply. Suppose you see something that you want but don’t need, add them to a list. Leave it for 30 days, and then if you still want it, then buy it.
Doing this will help you stop buying impulse and consider if you want to spend the money or if it would be better to put your cash into savings.
Are you getting paid enough?
When was the last time that you got a raise for the job you do? Or, if you are freelance, do you have clients who are paying you correctly? Often we get comfortable earning what we are earning – even though we could earn more if we tried.
For a raise, you’ll need to time it correctly and make sure that you have some reasons for getting a raise. During a performance review is typically a good time to ask, or after completing a large project.
Make sure you approach the conversation confidently so that they know you are asking for the raise for the right reasons.
Big vacations are expensive, and we should always enjoy experiences that make our lives rich and full. Most families can spend up to beyond $4,500 on vacations as a family of four, which is a lot that could go into the house-saving cash pot.
Instead of going further away from home, when you book time off, take some time at home instead. Relax at home, do some DIY, catch up on your reading and encourage the kids to do the same.
Pick some of the local places you haven’t headed to – often, we miss out on everything our city or town has because we are so busy focusing on heading off on an adventure. Check out some of the art galleries, courses, classes, libraries, and more that you have nearby over the vacation.
Home spa, baking bread, and more is a lot of fun, can be relaxing, and the best part is that it costs a tiny percent of what a bigger holiday might take.
Learning to cook or being selective with where you buy food or order can make a huge difference to your bank balance: https://www.tampafp.com/category/good-eats/
Debt can be one thing that stops us from reaching our savings goals as fast as we might want. Take a look at which debts are taking the most amount of cash, and get in contact with the creditor to see if you can freeze the interest, charges, or anything else.
The more debt you have, the less ‘good’ you look as a candidate for a mortgage. Ahead of applying for your mortgage, try to cut down your debts. Splitting what you have in terms of free cash into 50% savings and 50% into reducing debts or swapping around the percentages to pay more debts off faster.
If you find it easier to have a hands-off approach, then you can find plenty of options that can use a smart algorithm to work out what you have free and available to save and move it into a separate account.
In some cases, the bank you are with will have the facility to withdraw automatically from one of your accounts and place the money in another. Automatic saving is very beneficial for those who have trouble with saving or are not good with money management.
There are some times when the debts we have are overwhelming, and it means that we are unable to save at all. In fact, we probably end up worse off each month rather than better. It can be beneficial to speak to experts in managing debt or budgeting. This help can change your financial future for the best.
Saving for a house deposit is one of the biggest goals that most people have; however, it is possible with a little determination and changing some habits.