Six Tips For When You’re Saving For A House
There always seems to be something that we’re saving for doesn’t there? But a new home is often high on people’s list. Saving for something as large as that may seem unobtainable and far-off, but that doesn’t need to be the case. Have a look through these top tips below and see what you think. A few simple changes can make such a difference.
1. What is it that you’re saving for? Your first step needs to be to sit down and work out what it is you are saving for, how much money you already have and how much money you’re going to need. If you have a set date you want the savings for, you can figure out how much you will need to put aside each month to reach the goal in time.
2. Go through your finances. Write down everything that comes out of your account each month, and take this away from your incomings to see what you’re left with at the end of the month. Don’t forget quarterly and annual payments like car insurance and water bills. Estimate food bills and petrol costs based on what you’d usually spend (but be realistic here).
3. Check your bank account. There are many accounts which have good offers; some offer cash back on bills and interest on your savings. It’s a good idea to have an account which all the bills and spending come out of, and a savings one which all your savings go into. It’s better to keep them separate, this way you’re not tempted to dip into your savings at the end of the month when your current account is getting a bit thin on the ground.
4. Swap and change your providers. It’s been said time and again, but you can save super bucks by swapping gas/electric/internet/car insurance/breakdown cover providers. There are lots of comparison sites now so it doesn’t take long, and you can save hundreds to put in your ever-growing money pot.
5. Stay on track. If something is important enough to you, it will be worth the effort and the cutbacks. It’s not nice to not be able to do whatever you want with your money, but it will be worth it in the long run. Obviously, that luxury handbag or fancy car will look pretty tempting when you start to accumulate some money in the bank. But if your dream is a living in one of the new Monogram Homes or an old cottage full of character, then you’re going to need to keep focused.
6. Don’t make yourself miserable over it. Contradiction here, but saving for something big is going to take a while, and you can’t just sit around for the next 18 months waiting. You still have to be able to socialise and enjoy yourself. Your hair isn’t going to cut itself, and you really do need new clothes every now and again. It’s easy to get so focused on savings that you end up in limbo and aren’t actually living, but moderation is the key to everything in life.