5 Tips For Those Struggling To Save The Deposit For A New Home

By • Feb 2nd, 2013 • Category: Personal Finance

At the moment your biggest purchase might have been that secondhand car you drive to work in every day. Even though it might have been a lot of money at the time it’s not in the same league as a house. You don’t need to buy a new home outright because you’ll get a mortgage, but you need to remember than you will still be paying the deposit and fees which are still huge. The only way you’ll be able to get a place of your own is by saving up the money and it can be hard.

Some people will live their entire life in a rented house because they just can’t come up with that sort of money. They are usually the same people who seem to be a little carefree with their money. The truth is that you won’t be able to save the money within a few months because it could take years, so putting away even a small amount each month will eventually accumulate until you no longer get upset when you drive by a for sale sign. The question is: how can you change who you are and start saving lots of money?

Save before spending

Every month you always put money away for your bills because if you can’t pay them you’ll be in deep trouble. You should follow this same technique when saving because it actually works really well. As soon as your wages are paid into your account you want money transferred into a special savings account before you even have a chance to see how much you have. You would never in a million years have any money left at the end of the month otherwise.

Keep your spare change

We always have change in our pocket at some stage and it means nothing to us. That is why we can easily buy something with that change because apparently it doesn’t make a difference. Count it all up when the end of the month rolls around and you will see how little it means to you now. It should give you a big enough kick to stop buying things whenever you have a few dollars floating around and at the end of the month you can take it to the bank and put it straight into your savings account.

Only when you need it

Most of us are compulsive buyers and whenever we want something we go and buy it straight away. We also love to get stuff on credit, which is even worse because we have debt over our head. From now on you should have a resting period as soon as you decide you want something, because it’s possible you will get back home and change your mind. Maybe your future home is more important than a toaster, so you can learn to make toast on the grill.

Selling things

What better way to save money than to sell things you don’t use and put that money into your savings account. You might even want to think about selling your car and taking the bus if you could get a decent price for it. You don’t have to go crazy and get rid of everything you own, but it’s definitely in your best interests not to have things lying around gathering dust. Ask yourself if they would be coming with you to your new house anyway.

Take it easy

Learn to relax a little and enjoy the place you’re renting at the moment because you might start missing it when you’re gone. That is just a silly way of saying you should stay at home more instead of going out and doing all these crazy things. Wait until you have your own home before you eat at restaurants, go on holiday, or spend lots of money at the cinema. The quicker you get this deposit saved up, the happier you’re going to be.

Author Bio: Annette Murray is a formidable lady. She is very knowledgeable and the best in her field. She enjoys blogging on finance and business related topics. She recommends Knoxville Insurance to ensure that you and your family are always secure.

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