It’s no secret that our parents and grandparents had a far easier time of getting on the property ladder than today’s younger generations. Property prices are significantly higher and with the cost of living forever on the rise, saving for a new home can feel like a towering impossibility. That said, with the right approach and a little dedication, it is well within the realms of possibility. In this article, we’re going to share some shrewd money saving tips to grow your first property investment fund!
1. Make it your #1 priority
When saving for a home, everything else has to take a back seat. This means sticking with the car that you have, waiting before buying that new 50” TV, and forgoing the new wardrobe.
Yes, you should be able to enjoy yourself and spend on the occasional luxury, but if you want to get on the property ladder sooner rather than later, you must make saving for a mortgage your number one priority.
2. Automate your savings
There are plenty of apps that can help automate your savings. Set up a direct debit and re-route a set amount of your earnings each month into a savings account. Round up your purchases and add the spare change to your pot. Start small and increase each month as you become more comfortable with a spend-conscious lifestyle.
3. Save unexpected money
Have you filed your taxes and found out you’re getting a decent refund? Or perhaps a bonus at work? The extra money from a loved one for your birthday? Don’t let it burn a hole in your pocket. Act as though it was never yours in the first place and add it to the pot!
4. Cut back on the partying
You shouldn’t have to sacrifice your social life just to be able to afford a new home. However, by tightening your belt for the next year or two, you’ll be surprised by how much money you can save.
Rather than go out every weekend, why not host dinner parties and have friends over instead? There are plenty of affordable alternatives to going out each weekend and burning through your money unnecessarily.
5. Count every penny
Look for ways to cut down on your weekly grocery spend. Be frugal with your electricity and water usage at home. Walk or take the bus. Carpool with colleagues. Store food correctly and make sure it lasts longer…There are so many things that you can do to save money each month. Those pennies might seem pointless, but in the long-run they really do add up!
6. Find a cheap rental
Just because you can afford to rent a lavish apartment, it doesn’t mean that you should. Look for a cheap town house for rent and batten down the proverbial hatches while you save for a home of your own.
Bite the bullet and get on with it
It’s easy to get angry and lay blame on other people for the current cost of living crisis in the world today. But, rather than waste your time lamenting over your grandparents being able to buy their house for $4,000, 50-years ago, focus your energy on getting things done instead.
Yes, it is frustrating and there is a lot of injustice in the world. However, someone always has it worse than you and the mere fact that you have a job and are able to set money aside each month is a blessing.
If you stick to these tips and commit yourself wholeheartedly, you can and will get on the property ladder!
