How to Save for a House Deposit while Renting
Saving for a house deposit can be a struggle while renting. However, every bit of savings helps you get closer to your end goal. It is important to visualise your goal – visualise your dream home to own – to keep you on track.
Keep these 5 tips in mind to help reduce the waiting time of finally getting into your own home.
1. Create a designated savings account
The act of opening a savings account specifically for a down payment can be a great motivator, allowing you to see the money grow each month. Shop around for the best interest rates with ideally no fees.
2. Cut your monthly rent
Rent is most likely your biggest monthly expense. Find ways to minimise your monthly rent by finding a room mate, moving to a less trendy area, or downsizing from a one-bedroom to a studio. Remember it will only be temporary.
3. Do away with unnecessary expenses
Adjust your mobile phone plan to a cheaper one, bundle your internet services (or forget TV and just use a streaming service). Pack your lunch instead of eating at the pub every day. Little things like this count.
4. Start investing
Take a gamble and supplement your savings account with sound investments, whether it’s in a stock market or a mutual fund. You may end up increasing your earnings at a rapid rate than a savings account alone. Do your research before attempting this strategy.
5. Keep utilities in check
Turn off the lights when you leave the room, turn the tap off when you’re brushing your teeth, switch to energy-efficient light bulbs and more things like this around the home to help shave money off your monthly utility bills. Either way this is a great life long habit to continue once you’re a new homeowner too.
Hat Tip to Home Sales