Trying to save for a home when you are still paying rent that keeps going up
makes your goal seem almost impossible. However here are a few ideas
and suggestions that can work for you.
1. Stop telling yourself that you cannot do it. By changing your thinking to a more positive outlook you will be well on your way to reaching your goal. It does not matter how much you earn all of us can work towards owning our own homes. Yes, it may take quite a long time to save for your dream home but to make it a reality you need to take the first step.
2. Find out exactly how much your income is, and how much money you are actually spending each month. You should put this into writing or set up some type of spreadsheet on your computer. This will allow you to keep track of what money you are spending each month. Once you have put everything down, then you will need to see where you can tighten you belt a bit. What I mean by that is that you will need to find out how much you can save. For example I am sure that if you take a close look at your shopping list you will find a few things that you don’t really need to
purchase. The same can be said for items that many people buy to decorate their rented apartments or houses. Cut out these unnecessary expenses and put the money away towards your dream home.
3. Remember if you are saving for your own home then you really don’t need all of those unnecessary decorations or living in a luxury rented home. The key is to learn to live simply or to simplify your life. For instance you could move to a smaller, cheaper home and save the money you’ve been spending on rent towards your home. You may be surprised to find out how much money you are really spending each month on unnecessary items. You should also take a look at the amount of money that you spend each month on utilities such as water, electricity and telephone bills. Try to save on the money you spend on rent and utilities and be on your way to owning a home.
4. Take all of the money that you will now be saving each month and put it into a high interest earning fixed account. This way you will be letting your money make money for you. Most of these types of accounts require that you leave your money in their for an extended period of time. This
basically means that you will not be able to withdraw any money until a specified time. This is definitely something that would be in your best interest since it would keep you from spending any of the money you are saving.
Published in: Personal Finance