7 Budgeting Tips When Saving for a New Home
Buying a new home is an exciting prospect. It’s a new chapter in life, and one that many of us have to work hard to realise. If you have this goal set in your mind, then it’s time to start saving your money. After all, a home is quite a big purchase. Here are a few budgeting tips to help get you started.
Set a Monthly Budget
It’s time to calculate and prioritise. First calculate your monthly income and necessary monthly expenses. Include everything from rent and groceries to medical and household purchases to childcare and transportation costs. If you need help calculating your budget, utilise the help of online budget calculators.
Once you’ve decided how much money you have left over after all of your expenses, it’s time to prioritise. Do you really need to go out to dinner twice a week, or could that money go towards your home savings? If you want to make your home your top priority, you need to cut back on other needless expenses for the time being.
Don’t Touch Your Savings
Create a separate savings account for your new home fund and don’t touch it. Put money into it every week or every month, and congratulate yourself when you meet small milestones. It’s not all about the end goal.
Downsize Now, Upsize Later
This is especially easy if you don’t have children. You might want to consider moving into a smaller and cheaper apartment to save yourself a lot of money in rent, which can go towards your new home. Or, if you’re a two-family home, sell one car and put the profits towards your housing fund. This will also save you a lot in maintenance and petrol costs.
Pay Off Other Debts First
It’s not going to be easy to start saving for a new home if you are stuck paying off credit card debts and interest. Make sure to pay off all your debts first, starting with your smallest high interest debt.
Save All Extra Money
Whether its work bonuses, tax returns or $20 you found on the street, the urge to splurge is tempting. However, it’s important to keep your eye on the prize and put away every bit of extra cash that comes your way.
Apply for a Home Loan
There are many options out there for new home buyers to apply for a home loan that can help you pay for the down payment on a new home. Check out our home loan calculators to find the right institution to help you with a loan.
Look Out for First Time Home Buyers Programs
You may be eligible for a home buyer grant or concession from your state or territory’s government. Research their Office of State Revenue pages to see if you are eligible and apply.
Budgeting for a new home isn’t always easy but getting excited about the design is good motivation. Check out McDonald Jones Homes new home designs in NSW and the ACT now, or feel free to contact us online or call us today on 1300 555 382.