The deposit for a home is the biggest financial commitment of their lives for most first home buyers. With high stamp fees and the need to come up with at least 20% of the house’s full value, saving up needs to be done with great care to make sure that you do have enough money and the eligibility to obtain a loan when you find the right property.
Start by taking a good look at your spending and give your habits a good clean makeover to save more money to buy your first home.
Pick three things that you can stop spending on
Think about three things that you spend money on but can easily avoid. For example, if you tend to head to the nearby restaurant at the lunch hour, grab a coffee and a donut to breakfast every day and splurge on nights out every Saturday, these are easy enough expenses to avoid. You can easily do some prep on Sundays and have a delicious homemade meal for lunch, make your own coffee and take it to work along with a homemade breakfast sandwich and entertain at your house on Saturday nights for a change. You will be amazed at how much these expenses can add up over time!
Set a grocery budget for the week
If you tend to stop by at the supermarket on your way back from work and wander through the aisles, thinking about what you need at home while piling unnecessary items into your cart, you won’t be able to make much savings. Instead, pick a convenient day of the week and go to the supermarket with a list of things you actually need. Refrain from buying packaged meals, sugary beverages, pricey snacks and other expensive items. Set a budget and stick to it every week. Shopping only once a week will not only save up on food expenses but also on fuel costs.
Most food items charge you for their packaging. If there is a bulk buying store close to you, consider shopping there for bulk supplies such as milk, toilet paper, rice, beans, pasta, grains, flour and other items that can last you a long time. Some bulk stores allow you to bring your own containers to save up on packaging. If you have to shop at the supermarket, keep your eyes open for deals, coupons and weekly promotions. Farmers markets are widely popular for fresh and cheap produce. Head over to one and buy what’s in season when it is cheap. You can always freeze seasonal fruits and vegetables for long term use.