Saving for Your House Deposit
You may already be well aware of how hard saving can be, and saving for a housing deposit can be much more difficult, so, a strategy has to be put in place which can help you to achieve this. As housing prices have shot up by a huge amount, as savers, you have to become shrewder in your banking habits and with the ways in which you are able to save.
The difficult part to saving is making sure you do it systematically and find the motivation to do it for longer periods. The secret is to come up with a budget which means you do not fully sacrifice your or your family’s lifestyle, yet one that still allows you to make some realistic savings.
A monthly plan should be done which calculates all your expenses, such as travel, groceries, lunch, childcare and credit cards etc. next you should calculate all of your income and the remainder when you deduct the one from the other. Income minus expenditure.
The most difficult part is deciding which things you can live without, and it is usually those little unnecessary expenses which mount up over the month
Credit cards are a convenient option, especially if you find yourself short on some occasions. You should actually decide if you need one, as it is difficult to save whilst paying credit card debts on a monthly basis.
Tips for Effective Saving
Once you have calculated your budget, there are tips on where you can save, and how you can save effectively which are as follows:
Open a good savings account which pays decent interest compared to your current account.
Aim to save ten percent of your paycheck; this should go directly into your new savings account.
Eliminate those added luxuries.
- Cable TV – $80 per month saving.
- Pack lunches for work – $200 per month saving.
- Skip alcohol $100 – $500 per month saving.
Selling unwanted items on eBay can turn unwanted items into cash.
Get a part time job if possible, a few hours per week can easily add $1000 per month towards your home savings, this can be in many forms, babysitting, freelancing or tutoring to name but a few.
You can also look at the first home owners grant and see if you are eligible, this can go a long way towards reaching your ten percent deposit and helping you to get on the all-important property ladder.