How to more easily afford your new home
Property is one of the biggest investments you will make in your lifetime and with property prices increasing again after slump during the recession, it may seem like a mountain to climb to be able to afford to buy a house. It’s all about mindset and making small sacrifices that will pay off in the long run. Use these tips to more easily afford to buy a house:
A saving mentality
Change your mindset to that of “save it for a rainy day”. Make the commitment to put away a fixed percentage of your salary every month. Transfer it into a high-interest savings account from which NO withdrawals may be done. If you decide to put away 10%, then only 90% of your salary after tax is available for the rest of your budget. If you receive any tax returns or a bonus at work, pretend they never happened – ALL the extras go into your special savings account so that you can afford to buy your house.
Set saving targets for yourself so that your saving becomes goal-orientated and you can keep the motivation up at all times. You’ll also know the timeframe by when you’ll be able to afford, for example, the deposit on your new house.
If your priority is buying a house, it’s time to cut down on spendthrift shopping and to become thrifty instead. Don’t buy new clothes, shoes or kitchen appliances because “there’s a sale”; only buy items that are an absolute necessity. Stop shopping at speciality food stores four times a week and rather do a bulk shopping trip once a month. Trade in your nights out at the cinema for nights in over a board game, or a movie at a friend’s place. Save electricity by switching off your geyser during the day and bundling up during winter instead of using the heater. If you smoke, consider quitting and see how much money you’ll save. How badly do you want to buy a house? Every bit helps.
Let your friends and family know that you’re saving to buy a house so that they understand that expensive gifts and fancy restaurants will need to be put on the backburner until you’ve reached your saving goals.
Sell your excess
Get onto trade websites or have a garage sale and get rid of stuff you no longer need or want. You’ll be able to put the extra cash into your savings account and by the time you can afford your new house, there will be less stuff to move.