Are you saving for a house deposit? Do you need ideas on how to save for a house deposit? Right now, the average first-time buyer in the US has an income of $72,000, has no kids and is age 32.
It’s getting tougher out there, and so many would-be homeowners are upping their saving efforts in a bid to outrun the rises in property prices and mortgages. If you’re playing catch-up, here’s five ways to increase your savings so you can raise that all-important down-payment.
Tips On Saving For A House Deposit
Here are some helpful ways on how to help raise money for a house deposit:
Have A Yard Sale.
Most of us have far too much…stuff. It collects over the years and we don’t notice it. This can be DVDs, video games, books and designer or vintage clothes.
It’s unlikely you’ll raise your deposit from a good clear-out (unless your vintage clothes are something really special) but you’ll make something. You’ll also have less clutter to schlep with you to your new home!
Sell Stuff Online
If you are like me and don’t want the responsibility of a yard sale (they are a LOT of work!), just sell your stuff online. I like using Facebook groups to sell stuff I no longer need to people in my town. Or you can use the Facebook Market Place. If you use the FB Market Place you will have to sometimes ship out the things you sell to the buyers.
Use Your Yard Sale Earnings To Invest.
While it might not be a fortune, your proceeds can be used to buy gold and silver from Golden Eagle Coin. This will prevent you from spending your takings and the bullion can sit in a vault until it’s increased in value and you’re ready to sell. That might take a while, but if you are not looking to buy a new home right now, this is a great way to invest for the future!
Create a sensible roadmap.
You need targets and goals, so work out roughly how much of a deposit you’ll need. Ideally, you should aim for 10% of the average asking price in the bracket you’re looking at. More is always good, but being over-ambitious can be discouraging, so be bold, but reasonable.
Keep close tabs on everything you spend over the next few months, including things like bills, clothes, insurance, and trips. Try using a savings app or printable budget form to help you to keep track of everything.
The apps are great for catching you out on your silly spending habits – these are the ones that you need to get rid of. If you keep buying lip gloss, takeaway coffees or sandals, then at least two of these vices have to go.
If you decide to write down your budget and what you spend each month on a piece of paper, it helps SO much to see it in writing! What an eye-opener it was for me to see all the things (silly things!) my money was being spent on each month.
Those Vices Again…
Be realistic about your guilty pleasures and habits (see above). Things like that daily donut at the gas station, coffee/energy drinks, and candy should be cut back (for health reasons as well as financial), but do allow yourself some treats every now and then.
For example; You could get a coffee on the way into work but not on your way home, or try to use up any makeup you have (or whatever you tend to buy a lot of), and only buy more when it is gone or almost gone.
When it comes to restaurants and bars, don’t stop going out altogether, as you’ll just feel isolated and sad. Just think about other ways of socializing and alternate your nights out with an at-home potluck gathering, or having a few friends over for a movie night.
You can also talk to your insurance, TV and utility providers to see if you can cut a better deal. You might be paying for TV subscriptions that you just don’t use, or you might be able to get a discount on your home insurance if you pay for a year upfront. There are SO many ways to try and save a penny and it does add up.
Try Paying Less Rent (Is That Even Possible?!)
If you can downsize your current place, then you could pay significantly less rent each month. How many bedrooms do you have right now? Do you use all of them? How many downstairs rooms and bathrooms do you have and do you need them all? If you do decide to move to a cheaper rental, try to find one nearer to your work if possible so that your commuting costs are also cheaper.
If moving to another place is not an option (for most people it isn’t!), then think about getting a roommate or two. This will help you save on your monthly rent and give you peace of mind.
You can also rent out your garage or if you have a big shop you are not using. People tend to pay good money to store their things and you can benefit from that if you have the room!
Open A Savings Account
Open a savings account and only use this account to put money in for your home deposit! Do not touch it! Set aside a certain percentage of what you earn each month, and put it into this account then forget about it. Pretend you don’t even have that money and it is gone. That way, you won’t be tempted to dip into it
All of this saving and getting prepared for a new home and getting the money together for a home deposit can be hard, but it is so doable and SO worth it.
Preparing now will be so helpful in the long run AND you will learn discipline! That is a big thing when making such a big decision as buying a new home. You need the discipline to make it work out!
How did you save for a home deposit? Are there any tips/suggestions you have for a home buyer?