Trying to Save for a House? Try These Budgeting Tips!
If you’re like every millennial today, you’re probably wondering (and maybe a little worried) how you’re ever going to afford a house or condo in the future. Well, I’m here to tell you it is possible! However, it does take a few (or maybe more than a few) sacrifices. But, owning a home is one of the greatest investments you can make, so I’m telling you, it’s worth it.
Not sure how to save or what sacrifices you should be making. Don’t worry because I’ve got 6 of my favourite budgeting tips to help you save for that house. Check them out!
Spend Less on Unnecessary Expenses
Unfortunately, budgeting really does take some sacrifice. This is the time to really evaluate what’s important to you and differentiate between your wants and needs. Just these small changes can make a big difference!
Cut out subscriptions, move to a quiet city, learn to cook more dishes on Youtube, don’t go on any holidays, stay in on the weekends and only go out for special occasions. Just watch how your bank account grows when you alter just a few things in your life.
Save on Rent Where You Can
When trying to save for a house, you will need to sacrifice your current living situation. That means avoiding places you really dream of living, like big cities. Now is not the time to live in downtown Toronto where the rent is crazy expensive, and you have access to so many restaurants, bars, and stores. When saving for a home, look into living in small rural areas that are a lot cheaper on rent.
Not only should you focus on where to live but the size of your property. Try downsizing your space or giving up the master bedroom with the en suite and walk-in closet to save money on rent. It’s these small sacrifices that will make all the difference.
I understand how it can be difficult to change locations or live in a basement apartment – these options aren’t for everyone. If you want to still be sane and have somewhat of a social life, get a roommate to split on rent or rent out your den or spare room to a new tenant if your landlord allows it!
One last option, if you have it, is to move back in with your parents. This option might be a drag, but it could really save you a lot of money every month, meaning you’ll be closer to your end goal of moving out for good!
Open A Savings Account and Don’t Touch It
If you’re really serious about saving, you need to open a savings account with your bank. You can call or walk into your nearest branch to set up an appointment with an advisor. I highly suggest doing so because as much as you say you won’t spend what’s in your account, it can be tempting.
Once your savings account is set up, don’t touch that money, and add to it monthly or when you can. Pretend the money in this account doesn’t exist – because it doesn’t, it’s going towards your future house! You can ask your financial advisor the best ways to make contributions, when to make them, and how much to add. They’ll have all the answers based on you and your financial situation.
Only Use Cash for Everyday Purchases
When making any daily purchases, make sure to pay in cash. People are more likely to be cautious of how much they’re spending when it’s tangible and they can see the amount in front of them. When we use cards, we’re more likely to spend more. When you hand over hard cash, it feels a little more real. This is a great way to be mindful of your spendings and evaluate if you really need to make a purchase.
If Possible, Get Rid of Your Car
This one might be tough, especially if you don’t live in the city. But if you can, try carpooling with a coworker, learn to love transit again, or share the car with your parents if you’ve moved back in with them.
Or if you’re trying to stay in shape and save money at the same time, ride your bike everywhere! You’ll save on car and gym payments – it’s a win-win!
Put Your Money into Low-Risk Investments
Investments are a great way to grow your money quickly! Put your money into high-yield, low-risk investments to make sure you are more protected against market fluctuations while seeing your money grow. The best option will probably be bonds, as they are less risky than stocks. But please talk to your financial advisor to see what your best options are.
Call Zoie Conforti Today!
Budgeting can be challenging, but with some willpower and determination, I believe anyone can do it! If you’re looking for a real estate agent to help guide you through the buying process, then give me a call today at 647.293.8773. Let’s achieve your real estate goals!
Real estate is in my blood! My entire life, I have been exposed to the intricacies and complexities of the real estate spectrum from resale and land development to pre-construction and closing. I not only can make your homeownership dreams come true, but I have the experience to get your home on the market and sold in no time!