Tips on how to save for your first home

Easy ways to save extra money for your first home

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I can never afford to buy my home….

With all the media news around how property prices are growing fast, it’s understandable why so many young people don’t even try to get on the property ladder. Believe it or not there are always options regardless of your situation or current financial position. The real question that so many people don’t appreciate is “What do I need to give up to get ahead?”.

The question applies for anything you want to do in life to get ahead whether it be in your job or even save for a new car. The difference is perspective and what you deem achievable. A $35,000 car doesn’t sound like much and seems reasonably achievable. Where as a $400,000 house sounds a lot of money and an unrealistic target. Looking from a different perspective that $35,000 car is probably enough deposit for you to purchase your $400,000 home. Yes there are ongoing costs and bills to pay but what is the cost difference from your current living expenses? in most cases it’s not that much difference!thought-2123970_1920

So how can i save without impacting my current standard of living?

The honest answer is you cant, but the good news is it may not require that much of  a change!

Tip 1

Do you have any surplus money left at the end of each month? Try setting up a new savings pot and put it in there.

Tip 2

Instead of going to buy your coffee and breakfast every morning why not make your own and take it with you in a travel mug? This could easily save you $10 a day. This small change could save you $50 per week or $2,600 per year!

Tip 3

Make your own packed lunch! Again this small savings hack could easily save you $10 a day which is another $2,600 per year!

Tip 4

Limit the amount of takeout food you buy! Most people eat takeout 1-2 times a week, simply reducing your takeout to 1 a week or 1 every fortnight could save you $40 per week or $2,080 per year!

Tip 5

Choose different brands when you go food shopping. It’s no big secret that big brand names charge more for their products. Next time you go shopping give it a try, 70% of the products don’t taste any different! Again this could easily save you $30 per week or $1,560 per year.

In just these 5 simple steps the impact to the quality of your life is minimal but yet you have still managed to save $8,840 per year! not including any additional money saved at the end of each month.

I urge you to have a think of other areas of your life to make small changes that combined add up to make a big difference such as:

  • Monthly subscriptions
  • Mobile phone plan
  • Car insurance
  • Clothes and shoe shopping
  • Car you drive
  • Amount of alcohol you buy

Before you know it you could easily be saving $10,000 per year before making any big changes or working extra shifts at work! Making the impossible dream of owning your own home potentially doable in less than 2 years!!!

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Please note these are only general tips on how to save money and I am not offering financial advice.