The idea of owning a property, though highly appealing, is often daunting when one considers the amount of money that goes into a down payment. Like most people, once you’ve paid the bills, brought your groceries, paid rent and saved whatever you can for recreational activities, you may not have much left over to put into your property fund. Don’t let this discourage you from your dreams of owning your own home. Experienced property developer Tim Manning recommends that there are some steps that you can take to maximise your probability of saving enough to make a deposit on a home. Here are 3 simple ways you can put yourself in the best financial position to break into the property market:
- Pay off your debts
It seems strange to think about, paying off your debt in order to borrow more money. But credit card debt and other loans are all what you would consider “bad debt”. A mortgage on the other hand goes towards your assets and will benefit you further in the long run. In order to place yourself in a good position to save you first need to priorities paying off your existing debt. It’s impossible to save if you already owe money.
- Create a budget
A budget is the best tool you can have to help you save money. Becoming aware of what you spend your finances on is an all important part of the saving process. Maybe it’s that unused gym membership or the monthly payments on cable television that you never watch. Knowing where your money goes is the easiest way to minimise the likelihood that you’re wasting money on things that don’t matter and allow you to put these funds towards your savings.
- Maintain your goal orientated mind set
Know what you want from your savings and keep yourself consistently moving towards this goal. It’s fundamental in saving to continually move towards your ultimate goal, a deposit on a home. Create a plan and stick to it and you’ll be in the best position to reach your desires. Automate your savings from this plan, they’ll be taken out of your bank account every pay check and you’ll adjust to this new schedule. In no-time you’ll find yourself saving more money than you ever thought you could.
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