12.7.19

Tips on Saving for Your Dream Home


Do you want to buy your dream home? A big hurdle many people find challenging to overcome is saving up to either build or buy it. Often it feels impossible to cut back on your spending and save, especially when you’ve been trying for a long time. However, it’s surprisingly easy to save money quickly if you’re determined and have a goal in mind. Those who have a goal in mind are more likely to succeed quicker than those who don’t. Perhaps this is down to the individual, but it can also be due to a determination as the goal draws closer.

Open a high-interest savings account
Savings accounts can vary in interest rates, and right now, there aren’t many good percentages of interest available. However, there is still a variety of accounts out there. Making regular savings will allow you to save more in the long term as some fixed savings accounts give better interest rates than others. Remember to pay yourself first though, once you have opened your savings account, set up a standing order that goes from your current account on payday. That way, the money is transferred into your savings before you have time to spend it.

Invest
While this may seem counterproductive, investing in property or other assets can give huge returns. Buy to let properties are popular due to young people preferring rentals over buying their own home. Property companies like RW Invest give investors the option of reasonably priced properties with high rental yields that can produce great returns. City centre locations are favoured over the countryside, as there is a high demand for buy to let properties. Since there is a high demand, the rental prices can be expensive too, which means you're likely to make your money back sooner rather than later.

Reduce household bills
Sit down and calculate all your household bills. After this, you can work out if there is any possibility of reducing them. We all know about the benefits of switching off lights and unplugging chargers when they’re not being used, but how can household bills be reduced significantly? Online comparison websites are a great way to see if you’re paying over the odds for any of your gas, electricity or water bills. Don’t be afraid to switch providers if you see a good deal with a different company – all these savings will add up quicker than you think.

Rethink your transport
Public transport options are often cheaper than the cost of running your car, or better than that, you can walk! Rethinking your transportation to and from work can save you a lot of money, especially if you’re a driver. Carpooling is another way to save money, since sharing a car to work with local colleagues can cut costs and help you reach your savings target quicker.

Earn more and spend less
Possibly the easiest way to save money is to earn more than you're spending. This may seem obvious to some people, but if you're making large amounts of money but spending it within a few weeks of payday, you're never going to reach any financial goal or purchase that dream home. Consider cutting back in all luxuries of life and attempt to spend less on the lead up to saving for your dream home.

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