Saving money for your first home can feel like a daunting process. You’ve looked online, seen how much houses cost, and thought there’s no chance you’ll ever be able to buy one. Well, with the following tips, you can afford to purchase your first home. This doesn’t mean it will happen overnight - or even in the immediate future! Patience is needed, but the tips below will help you reach your goal:
Find an affordable place to live
The problem for many first-time buyers is that they’re looking at expensive houses. You grew up in a certain area, but this place is really bad for buying a house. Everything is super costly, meaning you get hardly anything for a good price.
According to Reed Pirian - an established real estate agent - the best areas for first-time home buyers are those with affordable housing. It sounds obvious, but it helps if you find cheaper places to live. This means your savings target can be significantly lower. Perhaps in the future, you’ll move back “home”, but for now, find somewhere affordable to get on the property ladder.
Set a weekly budget
Saving money is easy when you can work out how much you’re able to save every month. Even better, if you condense this down into weekly savings, it helps you achieve your goals faster. Take a look at your bank accounts and work out how much money you spend every month. This will include all your bills and essential purchases - like food, gas, etc.
From here, add a bit extra for non-essential purchases, and see how much money you have left when your wages are accounted for. Basically, subtract your expenses from your earnings and see what’s left over. Then, take this amount and consider how much you wish to save. Split that up between 4 weeks and you have a weekly savings target to aim for. Now, you can set weekly budgets to curve spending and achieve your goals a lot faster!
Try to pay as little rent as possible
If you can, live with your parents for as long as possible. Even if you’re in a relationship, living with one of your parents will help you save a fortune. They may ask you to pay “rent”, but it won’t be anywhere near as much as a landlord.
Alternatively, find a flat that offers everything you need and nothing more. Keep the rent as low as can be to reduce your expenses. Many first-time buyers struggle as they are trying to save money while renting. This little tip can help you out, making it easier to save lots of cash each month.
Make no mistake about it, saving for your first home will be a big challenge. However, with the right tips, it’ll be possible to achieve your dreams. A good idea is to figure out how much you’ll need to save for a downpayment on a house. This gives you a target to reach, which the tips above will help you move towards!
*contributed post*
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