As if saving up for a house is not challenging enough, many Australians have to go through life doing it AND paying rent at the same time. Plenty of people believe that in order to successfully do both, they need to make a drastic lifestyle change, but that’s not always necessary.
Take a look at these five fabulous tips to increasing savings without over-sacrificing.
- Draw a financial map
Before you even begin saving up for your own house, you need to gain a solid understanding of where your finances are at the moment. Once you have created a list of your recurring expenses, you will be able to set a reasonable budget that is dependent on how much you are comfortably able to afford.
- Keep your eye on the prize
It’s very easy to buy things that attract your attention but don’t necessarily need when you have money on hand. When saving up for a house, you need to fight that temptation and stay on course. Is tapping into your savings worth those pair of shoes you don’t really need?
When it comes to costs associated with your rental property, there are usually ways by which you could negotiate yourself lower or cheaper bills. Ask around until you find a provider willing to grant you a cheaper deal. Remember, any amount you save is an amount that can go towards your savings, so everything counts.
- Reward yourself
Saving up for a house can take a long time, and sometimes it is the wait that makes some people give up and devote the money to something else entirely. In order to prevent this from happening, reward yourself for each financial target you meet. You deserve it and it will keep you going strong.
- Stay positive
Coming up with the money to buy your own house is by no means easy. It is important that you stay calm and committed throughout the process of saving up. There might be times when you will fall behind schedule, or fail to save as much money as you initially wanted to, but the important thing is to keep going and remember your ultimate goal.
When you are prepared to tighten the belt when necessary, you should be able to meet your targets successfully and without too many bumps on the road. While there is no need to make a lifestyle change to accommodate budgeting for a home, it is important to stay focused and remember what really matters and what is important for now and for the future.