How To Budget For a Brand New Home
How to budget for a brand new home. Your home will be one of the biggest investments you make in your lifetime, but saving for a deposit can be overwhelming. Setting a budget will help you reach your goal of home ownership sooner, and it will be easier if you follow a few basic financial strategies.
Here are the simplest ways to budget for a brand new home:
Know Where Your Money is Going
You may have a savings target, but if you don’t know where your money is going on a day to day basis this will take longer to reach. Go through your accounts and examine any spending to understand what is essential, and what isn’t.
Being accountable to yourself will make you think twice about any spur of the moment purchases. Consider separating your money into different accounts such as daily spending, bills, and savings.
Building a home can be a great option, as there are packages available for maximum value. Your builder will be able to give you an estimate for your savings goal, which will give you a better indication of how to budget your money. Ben Trager Homes are a leading builder in Perth, and will help you get the most from your savings.
Reduce Your Bills
Unfortunately we can never eliminate bills entirely, but there are ways to reduce them in the short term while you save for your home. Consider renting a smaller property, or choose somewhere in a more affordable area. Alternatively, you could move in with a family member until you are closer to your savings goal.
Put off upgrading your phone or car, and try to get a better deal from your utility companies. Sometimes a simple phone call could see you on a better plan, leaving you with more money in your pocket.
Dining out can quickly put a dent in your finances, but planning your meals in advance will help you to limit the number of times you eat out.
Credit card debt will hinder your savings, and often comes with a high interest rate. Include regular credit card payments in your budget, and try to only use them in an emergency.
Sell What You Don’t Need
When you are saving for your new home, every dollar counts. If you have anything valuable that is no longer used you could consider selling it. For example, a car in your driveway could be sold to boost your savings by a few thousand dollars.
When you sell what you don’t need, you will also be reducing the amount of clutter you need to store. When you do get your new house, you will be able to start fresh!
Start a Side Gig
If you have a stable income, there may not be any flexibility to make extra money. You could think about having a side gig, to propel the growth of your deposit. This could be working as a bartender on a Friday night, teaching guitar if you are musically inclined, babysitting, or photography.
Think about any special skills you have that could be used around your traditional work hours, ensuring there is little financial outlay.
Get Serious About Saving
Making a few sacrifices in the short term will be worth it when you move into your brand new home. Be honest with yourself about where your money is going, and come up with some strategies to eliminate any current debt.
Learning how to budget now will be beneficial when you do have your very own mortgage.
Master Building Inspectors can assist with all new construction staged building inspections in Perth.