by Private Property Reporter
Purchasing a home is a major investment and it comes with a hefty price tag. Whether you intend to buy your home outright or to apply for a mortgage, you still need to save towards that purchase. The following tips will help you to save money towards your home purchase.
Prepare A Budget
The first step towards saving money for a home purchase is to have a functional budget. When you want to save money, you don’t need to only know exactly how much you earn on a monthly basis, you also need to know exactly how much you spend on a monthly basis. You can start by writing down a comprehensive list of goods and services you purchased in the past 3 months and how much you paid for them. This will enable you determine your spending pattern and you can draw up an income and expenditure budget for that month. This budget will detail the inflow of income and outflow of expenditure for that month.
Cut Down Your Expenses
When you look at your expenditure list, you will find out that there are so many things that you don’t really need. Those things are “wants” and should be separated from your “needs”. Separating your wants from your needs can save you some cash you would have spent on things that you really don’t need. Pruning your expenses when buying toys, food, clothes or when using utilities can help you save some extra money.
Save a Specific Amount of Money On a Regular Basis
Set aside a specific amount of money from your income each month for your savings. If you save at least 10% of your income every month towards that home purchase, you will save a sizeable amount over time. Saving a specific amount of money each month helps you nurture your saving habits and you can increase the amount you save as time goes on.
Save Before Spending
If you plan to spend your income and save what is left after spending, you might not really get to make a sizeable savings. Adopt a smart saving attitude by setting aside your savings amount before spending. This helps you to avoid spending all your money before you ever get a chance to save for your home purchase.
