Last time we touched on the exciting (or daunting) task of saving for your first home we considered all the questions it can bring about. How much money will I need? What will I have to sacrifice? How long will it take me to save? But, no matter the answers, if you want to get into your own home, when it comes to saving, there’s no time like the present.
To put things into real dollars and cents, consider this:
If you want to buy a home worth $400,000 with a 10% deposit, you need to save $40,000. It’s unlikely that you’ll save that amount of money in a short amount of time, so let’s break that figure down a bit more. If you want to save $40,000 over 2 years, you’ll need to save $20,000 per year, or around $1600 per month. You can break the figures down as much as you think is necessary and achievable for your own situation.
“Set a goal that suits you, but don’t make it too difficult or too easy, you want to be motivated, but not stressed to your limits.”
Now, this next step might sound simple...or terrifying, but it’s a step many neglect to follow through with, yet it’s so important. Keep a record of what you spend; every single dollar. It’s important to understand where your money is going, and ultimately, where you’re potentially over-spending. There are plenty of apps and spreadsheets available at your fingertips to help you budget, put them to work.
There may be bumps along the way, but the new home journey is a road you can definitely navigate with a little bit of dedication. Saving for your first home is a commitment that’s well worthwhile, and an achievement you’re sure to be proud of when you’re in your own perfect new home. So get saving. Today.
For more advice on the home buying process, visit The Guide.