Getting onto the property ladder is an important step that many individuals strive for. Having your own home isn’t just about having a place to sleep at night, it’s also about preparing for the future and building equity. With your own place, you’ll have greater stability and even more control over your living quarters. The benefits of owning a house far outweigh the negative, however, it’s not as easy as it seems.
Unless you have a large chunk of change sitting around, you’ll need to start saving for your mortgage deposit. Typically speaking, you’ll need around 20% to 25% of the home’s full asking price to put down a deposit – although some vendors will ask for a deposit as high as 40%.
In the long run, having a larger mortgage deposit is beneficial because you can take advantage of lower interest rates.
If you’re thinking of purchasing a home but you’re struggling to come up with a savings plan that will help you reach your goals quickly, you’ve come to the right place. In this article, we’ll be sharing all our top tips and tricks that will help you save money and secure that mortgage deposit.
Set a Goal
It’s incredibly important to set yourself a savings goal when you’re looking at putting down money for a mortgage deposit. Calculate how long it will take to save for your deposit and budget your monthly expenses accordingly. The best goals are what are known as SMART goals. In case you’re wondering, SMART stands for: specific, measurable, actionable, realistic, and timely.
Find an Additional Income Stream
If you want to reach your financial goals faster and you have some time to spare, why not find an additional stream of income. You can dedicate your extra time to babysitting or even decide to rent out a spare room in your home. You may even find that your side project starts bringing in some serious cash.
Reduce Your Bills
When you’re budgeting, you need to make a list of all your monthly expenses. Once you have a clear idea of where your money is going, try to reduce your most costly bills. For example, you can speak to your phone provider and find a cheaper SIM plan. Often, companies will offer you a better deal so that you keep using their services.
Become a Thrifty Spender
Just because you want to be more conscious with your spending, doesn’t mean you can’t enjoy a few luxuries. Rather than buying a coffee from your local Starbucks every morning, treat yourself once or twice a week. If you want to go out for dinner, why not look on Groupon to see what deals are in your area?
Overall, remember to be consistent with your savings plan, as this is the easiest way to reach your goals. If you’re saving with a partner or family member, you can reach your goals even quicker. Have your sights set on a house? What are you waiting for? Get started now so that you can secure that loan and move into your fantasy home.
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