7 Ways to Save Money for A New House
Buying a property is an exciting and self-fulfilling achievement for many. However, most people still find it hard to afford a home. So many factors contribute to this—the rising cost of living, low income, bad credit, and many other factors. Even with how untenable the property market looks, it’s still the dream of many to climb the property ladder.
There are many paths to get on the homeowner ladder. Most people prefer to buy Bitcoin, a cryptocurrency that enables them to grow their money faster. But, regardless of your income bracket, credit score, or increased cost of living, affording a home is realizable.
While investing in cryptocurrency will help you gain enough passive income to purchase a home, there are other routes to get on the property ladder faster. We are still wondering how to save money for a house.
We’ve compiled seven reliable ways to save up for that “forever home” quickly.
1. Set Up a Home Savings Fund Account
The first money-saving tip you’ll need to know is that your home savings fund has to be in a separate pot. Avoid the urge to leave your home fund in your regular savings/bank account. Setting up a new savings account when you start saving for your forever home helps you keep track of your savings.
Once you’re ready to set up the home fund account, choose the high-yield savings option. High-yield savings accounts are important because they have better interest rates than regular savings accounts.
This way, you easily track how much you’re saving for your home and earn good interest to speed up the process.
Also, look out for a tax-free savings account. That way, your money can grow freely without paying any income tax on the money you’re saving.
2. Prioritize Budgeting
Budgeting is one of the essential money-saving tips. With budgeting, you easily earmark the crucial things to include or exclude from your needs. Budgeting also helps you to have a clear direction on where you put your money.
While saving for a house, break down your monthly income by creating a budget. Outline your essentials and redirect the remaining fund into your home savings fund. There are many ways to budget your income and expenditure. You can either write them down or make use of budgeting apps.
3. Track & Cut Back On Expenses
Budgeting, tracking, and cutting back on expenses go hand-in-hand. Creating a budget helps you consider the places your money enters. With that same budget, you will track and spot any unnecessary expenses.
This does not mean you should cut back on all expenses. Prioritize only essential expenses while limiting how much you spend on non-essentials. Once you’ve cut down on your non-essential expenses, it allows you more money to redirect into your home fund.
4. Increase Your Income
Saving for a home does not mean depriving yourself of basic needs or enjoyment. In reality, it’s often not easy to cut back on expenses to help you save up for your new home. Sometimes, regardless of how much you cut back, it’ll still take you longer to attain the goal.
If you’re finding it challenging to cut back on your expenses, it might be time to increase your income. There are various ways people increase their income. You can either ask for a raise at work, get a higher-paying job or set up a side hustle.
5. Look Out For Side Hustles
Perhaps you’ve gone through the asking for a pay rise or seeking other jobs, and nothing has materialized yet. But you urgently need to be dipping more money into your home fund to get on the property ladder quicker. Starting a side hustle could be the answer you need.
Several side hustles exist. All you need to do is to research them and double down on a side hustle. Remember to choose a side hustle you can deliver on.
6. Put Your Retirement Saving on Hold Temporarily
Juggling different saving goals all at once can be challenging, especially when you’re operating on limited funds. Putting money into your retirement fund is essential, but take a break if it’s affecting you from saving up for a home.
7. Look For Cheaper Ways to do Things
One of the smart ways to save money is by looking for cheaper ways to do something. Going cheaper is recommended if you’re saving for a home on a low income. Going for cheaper options will enable you to cut costs and put more money into your home fund.
For instance, consider using the library if you spend a ton of money on books. Do you also spend your monthly income on clothes? Consider wearing your older clothes.
Aside from saving, investing is another option to help you reach your home savings target faster. However, the above-listed tips are some ways to save money for a house without too much hassle.