How to save for a home
Category Southern Suburbs
With the current economic conditions in South Africa, many potential homeowners find it difficult to save for a new place to call their own. Whether it is a first home or a bigger place, owning a home is a big achievement which can cost more than what it did a year ago. Here are ways to save for your next home.
How much do you need to save?
The first step is to determine how much it is that you need to save. While the price of your dream home will fluctuate over time, having a rough estimate of how much you need to save for a deposit will help you lay down the foundation of how to achieve your saving goals. Use our online bond calculator to help you gain a better idea of what the costs involved in purchasing a new home are. The higher the deposit amount the more affordable your monthly repayments will be for your new home.
Create a budget
Once you have your goal in sight it's time to create a budget and stick to it. Eliminating your debts one by one will allow you to have more money to save towards your bond. Aim to pay off the debts with the highest interest rates first and try to avoid getting yourself into new debts.
A great way to save for a home is to evaluate your current lifestyle and cut back on the little luxuries that are preventing you from reaching your goals. For instance, if your daily cup of coffee costs you R25, in a year you would spend just over R6000. That is R6000 that you could be saving towards a deposit for your new home. Consider taking an extra five minutes to make your own coffee.
Get a savings account
Saving can be tough for many people as it is tempting to 'treat yourself' to a new pair of designer shoes every month. The best way to save your hard earned money is to apply for a separate savings account. Some accounts also require a 7 to 32 days notice to withdraw your money. This time frame assists in preventing you from making impulsive purchases and helps you save for a home. It is wise to save your estimated amount the day you get your salary rather than waiting to see what you have leftover as you are most likely to spend more than you anticipated.
Shop around
When it comes to your monthly expenses, aim for the best deals. Retail stores are always competing with each other with lower prices and monthly specials. Know your market and opt for the most affordable deals. You can also save for your future home by taking advantage of 3 for 2 and bulk deals. You may not need three of the same item right now, however planning ahead will save you money.
Boost your income
Finding ways to boost your income can be easy if you put your mind to it. Think about what you are good at and make that into extra income. Let's say you are great at gardening and already have your tools. Offer your services to your neighbours, friends, and family. You will be surprised at just how many people would be interested in your services. You could also take up a weekend job depending on your skills. Other income boosters include; photography, babysitting, shopping mall promotions, car wash services, and more. Once you begin increasing your income, saving for a home becomes faster and easier.
Saving for a home can be daunting and stressful, especially when you want to 'live for the moment', but with determination, it can be done. When the time is right contact Knight Frank Properties and we will assist you in finding your dream home.
Author: Knight Frank