Saving for Your Biggest Investment to Date: Your First Home

If you are ready to get onto the property ladder, there is a lot that needs to be done. The first step is to save. This is the hardest step of them all. Not only are you going to need money for a deposit, but also you will need a good chunk of extra cash for all of the other costs that come with buying a house. This includes everything from insurance and legal fees to property taxes. There are a number of home buying calculators online that can help you to work out exactly what you need. Once you have done this, you need to make a plan to save for your first home, which is exactly what this blog post is designed to help you with. Read on to discover some top tips on accumulating the funds you need for your biggest investment to date.

 

 

Accurately calculate how much you are going to need

Before you can begin to save properly, you need to have a good understanding regarding how much money you are going to need. This is one of the most common buyer agency questions received by reputable property agencies across the country, so don’t be afraid to call up a few firms and get their expert recommendation regarding how much money you should set aside for the type of property you have your sights set on.

 

Make some extra cash

Look for some ways to make some extra funds that can go towards purchasing a new home. This includes selling things you no longer need doing some extra work online in the evenings, or offering up a service, for example, babysitting, cleaning, or pet setting. All of the extra cash you make should go directly into your savings account.

 

Explore your saving options

When saving for a property, you need to figure out where you are going to save your cash. A lot of people end up missing out on a nice bit of interest that could be added to their savings because they do not choose a bank account with care. Regular savings accounts and easy access accounts are suitable for those who are saving on a short-term basis. You won’t benefit from incredible interest rates, but it is good to look at these before deciding on the best account for you. After all, once you accumulate a large chunk of money, one percent of interest is a lot more than you may have imagined. If you are going to need several years to save for a property, you will have a greater selection of savings accounts available to you. Don’t only consider savings accounts, but look at current accounts too. This is because there are some current accounts available today that actually pay more than savings accounts do.

 

Reduce your expenditure as much as possible

When saving for an investment as substantial as a house, you are going to need to cut back on your spending considerably. You need to sit down and take a look at the outgoings you have on a monthly basis. Every outgoing needs to be scrutinized carefully. Are there any ways that you can reduce this expense or get rid of it all together? Only pay for things you really need. If you have a number of television subscriptions, now would be the perfect time to cancel them. Not only this, but do not assume that your bills are set in stone. It is a good idea to ring your utility company to find out whether you can negotiate being on a lower tariff. Once you have reduced your costs to the bare minimum, you can calculate the difference between the costs you were paying and the monthly outgoings you are now subjected too. The difference between the two should be put in a savings account every month so that it can go towards buying your first home.

 

Create a plan

Once you have reduced your spending to the bare minimum, you then need to create a savings plan. This does not need to be complicated, but it does need to be done. You need to look at the amount of money you have coming in every month, and subtract your outgoings. The figure you are left with is how much money you have available to you every month. You will need to deduct an amount of this for living expenses. It is important to be realistic regarding how much money you need for living expenses each month. After all, if you don’t give yourself enough to live off, you are never going to be able to stick to the financial plan you have created, and so it defeats the purpose. Once you have deducted your living expenses, you will be left with the figure that you are able to save comfortably on a monthly basis. You can then work out when you will be able to reach your savings target. Having a plan in place like this does not only ensure you are organized, but it will keep you motivated. Saving without a plan and simply saying; “I’ll put as much as I can away each month” is never a wise idea.

 

Government assistance

The final thing you need to do is find out whether you are entitled to any assistance. Needless to say, this will depend on where you live at the moment and whereabouts you are thinking about buying a property. It will also depend on your individual circumstances. However, there are numerous help-to-buy schemes available for those looking to get their foot on the property ladder, so make sure you explore all of your options carefully.

 

Hopefully, you now feel more prepared to put the wheels in motion and save for your first property. While it may seem like you have a mountain to climb, if you follow the tips that have been mentioned above, you will be able to accumulate the funds you require in the quickest and most stress-free manner. Good luck!

 

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