You want to save money for a Home Loan deposit but are struggling to save? The two important secrets when it comes to saving for a home loan deposit – Be realistic about your lifestyle and what you are willing to relinquish in order to own a house and the tracking of your actual monthly spend.
Creating a budget can be a very challenging task. The first step to making a budget is to be realistic about your income/lifestyle and what you are willing to give up to be able to save more. By doing this – you know exactly how much money you have coming in and, and how much is being spent. Once you’ve created your budget, revert back to it and review it to see if you have been honest with yourself. This should help to create a true portrayal of your finances.
It is always easy to say that you will stick to your budget, but once reality meets perception it is frequently quite hard to align the two. The most effective way to be liable for your budget is to write down your actual spends. Keep a notebook in your bag and record each expense or download a Smart-Phone app to help you record it.
The following are a few tips that should help you to stick to your budget.
Be sensible: Unquestionably, we could all save a fortune if we did not have to eat or entertain ourselves. One should be able to cut your grocery bill by up to 15% or so, but a 30% or more reduction in spending is plainly unrealistic. Plan to spend some money on entertainment; everyone needs a little reward now and again.
Try to find free activities: Saving doesn’t mean that you have to become a hermit – Not everything in life costs money. Make a list of free things you can do each month. For instance; go to a concert in the park, hike on the weekend or visit a free museum. Study your local papers and the internet for ideas – There’s always loads to do for free.
Remedy bad spending habits: A budget not only teaches us how to save, but it also helps us to recognise our guilty pleasures and unhealthy spending habits. Plan in advance to give yourself a guilty pleasure every so often, simply ensure that it is within budget.
Plan for unforeseen events: Ensure you put aside some emergency funds for unexpected events (car repairs, loss of employment, medical bills etc.). Note: These monies should be used for real emergencies only – not for a shopping spree or a crazy night out.
Be thankful for what you have: In our time – there is so much focus on generating wealth; and as a result materialism often gets the best of most us. Try to avoid attachment to material possessions and you should discover that budgeting takes care of itself. More importantly, you will be able to afford yourself simpler, yet fuller lives simply by appreciating what you have. Try to focus on your needs, not your wants.
Remember – you are budgeting for a reason – make it count.
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The following article was provided by top South African Home Loans Company, who also offers specialised service in Second Bonds.