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5 Ways to Save for a House Deposit

How to save for your first home down payment

There has never been any doubt that buying your first home is not going to be an easy endeavor.

Unless you are fortunate enough to have a stash of money hidden somewhere, saving up for your first deposit can be quite the enormous challenge—depending on how disciplined you are with your finances.

A lot of things come into play such as your present pecuniary situation, your financial priorities, what you currently earn as well as if you already have a family or not. With all these in consideration, buying a home is not only considered a significant investment, but a major milestone in life as well.

Look for ways to save for a house deposit
With some careful planning and finnacial discipline, you can start saving money for your
first home down payment, without too much of self-sacrifice.

However, while the prospect of saving for a home already sounds daunting by itself, it does not have to be impossible and neither does it have to be a lengthy and tedious ordeal. Do know that this is not something you can easily achieve. It takes every ounce of will-power and determination you have. Couple this with a sound financial judgment, discipline as well as a well-executed strategy and you will be buying that home.

In this article, we will show you the various expert tips and techniques on how to save for a house deposit fast. Sure, property prices may be sporadically low or high that saving for it can be quite difficult. However, remember, the longer you wait, the higher the price your house is likely going to be by the time you get around to buying it.

How to Save for a House Deposit

Here are the ways you can save for that first house down payment without feeling like you are depriving yourself too much:

1. Be smart with your money

Although no one is telling you to subscribe to the idea of constraining yourself to eat canned beans, this does not mean you should freely do with your money as you please. As such, this article advocates and puts heavy emphasis on spending your money wisely. No one is telling you to live in a miserly manner, but you should not be as nonchalant with your finances either. Itemize where your money is going and if possible, choose cheaper alternatives.

2. Take it straight out of your pay

You may have heard the maxim that encouraged you to spend what you have only after saving and not the other way around. By now, you should know that this article echoes the same sentiment. Whenever you get paid, remember to save it first and only spend what is left. Save your money the moment you get paid and then try to live off the rest—stretching it as far as possible.

3. Downgrade your car

While this might be a hard bargain for most, you need to reevaluate what your priorities really are: driving a nice car or having a house to live in? If you already have two cars, why not settle for just one and you might be pleasantly surprised that it could already be the deposit for the property you are considering. Take note, cars are depreciating assets whose value goes down over time. Moreover, it costs you quite a lot to have it run. To complement that expense, you would need to spend for petrol, registration, insurance as well as maintenance. From the standpoint of someone trying to buy a first home, it seems like owning two cars can be quite the money waster.

4. Earn money on the side

If you feel like you are not making enough to save up for that first down payment fast, then why not try to make some money on the side? If you have a spare room in your condo lahug, use it to house guests on online booking platforms for short-term rentals such as Airbnb? Similarly, you may want to house a tenant for a fee so you can earn extra revenue which you can use to save up for a house? If you live in a particularly busy area, finding renters would be easy. Moreover, it can potentially be a lucrative business as well. Alternatively, if renting out space in your home does not sit well with you, earn that extra income by having work on the side. If you have a skill you are particularly good at, try to do some freelance work.

5. Sell your old stuff

One excellent way to quickly come up with extra money is to sell the stuff you no longer need. Over the weekend, hold a garage sale and advertise your garage sale on social media. Alternatively, you can choose to sell your items online to reach an even wider audience. In this way, you would not only be coming up with extra revenue, but you would be effectively getting rid of the clutter as well.

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