There are a lot of great ways to saving up for your first home buy, but we have summarized what we think are the most essential points and create a list 5 essential money-saving habits to help you achieve your goal quickly.
These tips from Turbotap may be useful in financial planning for your first home, but you will also find them useful for any major budgets, such as buying a car, preparing for a vacation, paying off your debts or saving for retirement.
Most people find once they have achieved an objective, they can apply the same strategies to help them meet their other major financial targets.
Prioritize home buying
Planning for a major budget, like buying a home, is all about commitment and setting your priorities right. So you should take time to review your current cash inflows and outflow.
What’s your income level and does it justify your spending pattern, in view of your vision of owning your own home soon?
For example, rather than eating out all the time, how about making some home meals and cut back on spending? Also, try to taking yourself or family to local fun spots and entertainment centres in your country, in place of expensive vacations.
You don’t always need to buy all the expensive gadgets or buy a brand new car to add to a current one. If you’re looking at saving for a house, you need to be financially prudent and tighten your belt a little bit.
Scrutinize your weekly and monthly expenditures and find areas where you can cut back, create a budget and put more money into your savings account.
Having said that, make sure you don’t unnecessarily punish yourself in the process. Prioritize and save for a home purchase, but let it be complex, painful and frustrating for you. Occasionally, make discretionary expenses and enjoy the simple pleasures of life.
Pay off your high interests debts
Savings will be difficult if you’re having to pay lots of interest to a creditor. To lighten the task, consider paying off your debts. Your application for a mortgage will be rejected if you have too many unsettled consumer debts.
Save your bonuses and other extras
Bonuses, salary increments, extra sales commissions, tax refunds and other occasional windfalls are a great opportunity to build up your savings wallet. You should aim at saving 100% or a major percentage of such sums in special savings account.
Sometimes, the amount may be insignificant, but it will all add up eventually to actualizing your home ownership goals.
Automate your savings account
Once you’ve set up a special savings account dedicated to your home purchase vision, tell you’re the payroll department of your office to automatically send a fixed amount on all paydays through direct deposit with a notification sent to you.
This way, you will automate your savings and won’t feel the impacts much, as long as set up a good family budget.
Work with a trusted and experienced team of Realtors
It is also important to engage trusted and committed real estate experts when planning to buy your first home.
For example, if you live in Vancouver or other regions in Canada, working with an experienced and dedicated team of realtors such as Richard Morrison can give you an edge with good guidance and counseling that empowers you.
With a brokerage sales volume that exceeds $80million annually and over 90 transactions, Remax sells an average of 7 to 8 homes every month or nearly 2 every week, and work 365 days a year.
According to the TurboTap CEO, Richard Morrison, “Our business is about empowering the average individual or business to buy/sell real estate as a means of building wealth, as a means of financial freedom, as a means of leaving a legacy that is self-sustaining.”