If your ultimate goal is to save for a house while paying for your monthly rent, the key is to stick to your budget. By focusing on your goal and practicing proper money management, any renter can turn into a buyer.
This, however, is no easy feat. Buying a house for sale in Rouse Hill through Lend Lease will require a sizable down payment and even more cash if buying it outright. Either way, accumulating the needed funds can be difficult for you. While there are plenty of ways to save money for your big purchase, the best ones will help you do it quicker.
Begin by Reducing Your Spending
To learn how to save money, know the difference between essential spending and non-essential spending. Your monthly rent and tuition fee are both an essential expense while your cable bill is not. List down your monthly expenses and label each one to determine which ones are essential or non-essential. After that, prioritise the non-essential expenses and rank them according to importance. For instance, if you rarely use your internet connection, cancel it. The same goes for other non-essential expenses.
Tracking your income to see where you can cut back on your spending will help you reduce your overall monthly expenses. Cut back on your shopping, groceries or even cable services. Limit your out-of-town trips or eating out. If you drive a car, switch to an older model. If you have boats or motorcycles you no longer use, sell them instead of spending more on upkeep, insurance and gas.
Increase Your Monthly Earnings
To increase your savings, you also have to increase your earnings. If you can, take extra hours overtime. Seek out a second income. Offer to drive for your neighbour, mow the grass, baby sit or perform maintenance work. This can speed up your goal of becoming a homeowner. Put away the money you earn each month and work towards achieving your goal. You can easily cut the time it takes to save money for down payment depending on how much you make.
Lower Your Monthly Rent
While it is true that you cannot control the rent for the apartment you are currently living in, you can lower your rent by adding a roommate, trying to negotiate a lower rate or moving to a cheaper location. A reduction of $400 per month adds up to about $4,800 in one year. Although it can be difficult to adjust to a smaller space if you are used to a spacious apartment, the long term benefits of having your own house can easily outweigh your disappointment. The money you save for your monthly rent can be used for the down payment of the house you will be acquiring in the future.
Reduce Interest Rates
Work on reducing the monthly payments you make so you can have more cash to put away. Refinance your credit card or auto loan to lower the overall interest rate. Even your student loans can be reduced to suit your needs.
