Our saving habits determine, to a great extent the amount of interest we’ll pay when we finally get a home loan. We need a serious saving plan if we want to move from being renters to homeowners shortly. Spending more than what we earn can get us into debts, leaving no savings at all. But how exactly can we save for a home deposit?
Sometimes, even after scrimping, we hardly make significant savings towards a house. But diversifying our income sources can make the figures to add up. If getting a higher-paying job is out of the equation, we should consider a second job. The ability to create multiple income streams depends on our free time, skills, and abilities. It is easier to get casual jobs on weekends. But employing our skills and talents to solve problems are better ways to earn extra money. There are many opportunities we tend to neglect in our environment. From recycling activities to charity shops, we can better use our free time to make a living. The ultimate goal is to save towards a home deposit. This could mean sacrificing the time we spend hanging out with friends. It takes a lot of sacrifices to manage a second responsibility. Joining free courses on how to make money remotely can be helpful as well. People doing the same remote jobs can give us tips on how to stand out. But this doesn’t mean we overwork ourselves.
Some of us grew up being reminded to turn off lights and close taps when brushing teeth. We also know that spending hours on the phone for the wrong reasons is a waste of resources. These disciplines can save our bills end month. Getting a smart meter for electricity is a great way to watch electricity bills. Switching from bathtubs to showers and running washing machines on full load can save water bills. Daily changes may seem insignificant, but we stand a chance to save a huge amount for a house deposit months down the line.
Our living arrangements have a lot to do with how we save money. There are many ways to downsize, e.g. moving from a house to studio. However, we must be careful with areas that command a high cost of the commute. Renting a house share is another way to save on monthly expenses. We can also talk to our landlords to see if they can get a lodger to rent a spare room in our compound. Mentioning that combined rent is higher would work out. Some neighbourhoods run property guardian schemes where tenants pay less money in rent to take care of an empty house. While the cost of moving is not cheap, we should weigh the long-term saving benefits of downsizing before taking any action.
While living under a rental agreement, we try to make the most of what is available. There are parking spaces we hardly use. Some spaces that stay empty could have a better use. These are areas we can make money as long as we don’t violate the rental agreement.
Co-living developments are flats featuring communal spaces, e.g. living rooms, bathroom and kitchen. They can save us the money we badly need for a house down payment. Co-living also eliminated the challenge of finding housemates to share the rental.
Another option to save for a house deposit is to move in with our loved ones. But as we move back to our parents’ houses, we should contribute towards bills. Sharing utility bills with a brother or sister doesn’t cost as much as a landlord charges. However, we must discuss our intentions before seeking help from loved ones.
Let’s keep up with these lessons for the sake of our future.