Saving Money To Buy A Home – Small Guide With Tips

Theoretically, it’s better to pay mortgage for a home that’s yours than to pay rent for a space that belongs to someone else unless, of course, you move a lot and this option is not merely as practical as others. But before you can buy your own home, you need to save money. So how do you even start?

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Well, first of all, decide how you want your dream home to look like. If you plan on having a huge house, then you’ll definitely have to save more money. Be realistic and practical.

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Also, once you figured out how much home you can afford, calculate how much down payment you need to save. This depends on factors such as the purchase price of the home you wish to buy and the percentage required by the lender. It can vary from 5% to 20%.

Then comes the hard part: saving the money. Consider opening a savings account. It’s easy to spend money you have in hand or in your personal account which you use on a regular basis. But when it’s a separate account specifically designed to keep your savings safe, things are different.

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Find ways to earn some extra income. You can get a second part-time job or offer your professional services to others who need them and want to pay you for this. For example, if you work in IT, finding opportunities is easy.

Another thing you can try is make faux payments. In other words, pretend you’re paying rent for a few months and put the money in your savings accounts. It’s a good practice and you’ll also get to save a beautiful sum. Don’t make the sum too big. You should decide on a comfortable number which doesn’t require you to make big sacrifices.

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Perhaps you can move to a different location where the rent is lower. But only make the change if it’s not too drastic. If you can’t find anything cheaper which offers good conditions, it’s not really worth the sacrifice.

And, obviously, you need to cut down spending. So instead of taking expensive vacations in exotic places, consider something cheaper. Although it may be less impressive and interesting, the though that you’ll be one step closer to having your own cozy home should be enough to cheer you up.

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Make a list when you go shopping and stick to it. Only get the items on the list and don’t even bother to look around for anything less. Be practical and committed.

Also, stick to the 30 day rule. Before you make a big purchase, take the time to really think about it. If after 30 days you still feel like you need that item, then you should get it. There’s also a 10 second rule you can apply when you’re going shopping. When you take something off the counter, take 10 seconds to decide whether you really need that item or not.

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Try to cook more instead of ordering in or going out to eat. It’s cheaper and also it can be a way to eat healthier. You may even learn some new and delicious recipes and pass them on to your friends.

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Try to give up expensive habits. If you’re a smoker, you can really save some money if you give up this habit. You can also try drinking less and give up drugs if that’s the case.

Instead of going out, you should have fiends over more often. It’s cheaper to buy everything you need at the supermarket and there are plenty of ways in which you can have fun at home. You can play board games, watch movies or even party.

Cancel any unused club memberships. If you have a gum membership and you only go there a few times a year or never, there’s no point in paying it.

Analyze your phone bill and give up any options you don’t need. Only keep the one you actually use on a regular basis. Do you really need all that internet traffic or can you just use your wi-fi without even noticing the change?

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Also, cancel the cable or satellite channels you don’t need. Only keep the ones you enjoy watching on a regular basis and give up the ones you could do without.

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Install a thermostat where you live now. This can help you quite a bit during the winter months by regulating the temperature and keeping it constant without using more energy than it has to.{found on mashable}.

Start using public transportation. As much as you enjoy taking a taxi everywhere you go, that’s not exactly great for your budget. You should also start to carpool to work.

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Instead of calling someone every time you need some repairs done, try to get the job done yourself. You can find tutorials and tips on the internet, ask around and become a handyman yourself.{found on site}.

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And speaking of that, maybe you’d also enjoy some DIY projects. Start making items instead of buying everything. For example, you can make gifts instead of buying them from the store. This way it would also be more personal.

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And, as a general rule, don’t always buy the cheapest item you can find. Invest in quality find the best balance between quality and price. This can be applied to pretty much everything, from large appliances to shoes and accessories.