Struggling To Save For Your First Home? Follow These Tips… December 15, 2015My LifeOff

It can be tough to save up enough for the down payment on your first home. Especially if you’re struggling to make ends meet. Don’t worry, though. Here are some tips that’ll help you save up enough money to get the house that you’ve worked so hard for.

Consider Buying With Somebody Else
If you think you’re out of luck because all your friends are paired off and you’re still single, then fear not. Buying a first home isn’t just for young couples. Consider buying with a friend or relative, this is bound to help spread the costs. How cool would living in your own house with your best mate be? It’d be just like college all over again! Make sure you trust this person with your life, though, it is probably more advisable with a family members. I’m sure there’s plenty of mothers or fathers out there who’d love to invest in something with their loved one.

Reconsider Where You Want To Live
You may have your heart set on a roof-top apartment in New York City but, sadly, not everybody can be that fortunate. It’s worth reconsidering where you want to live if you’re going to be able to afford anything prior to winning the lottery! Check out less expensive areas either outside of the city in more rural areas. Or, if you live for that hustle and bustle, more so in the suburbs. It can be surprising how much costs can differ for the exact same 3-bed house in one location in comparison to another. If location isn’t everything you, then it may be worth trying to save some cash here.

Stop Renting
If you’re currently renting while saving then stop, immediately! All the cash you plummet into renting is just dead money, you never get it back, it’s not an investment. Consider asking your parents if you can move back in with them after college. I’m sure not many would say no to a loved one. Even if they want you to pay board, it’s still worth it! You don’t have to worry about paying to keep a roof over your head anymore, and you can save almost all of your paycheck. Result!

Perform Well At Work
It’s important to work really hard during the period of saving for your first home. If you concentrate on your job and really begin to start getting your company the results they’re after, it puts you in a stronger position. Ideally, if you could earn a promotion, that would be incredible. However, this isn’t always possible, so go in confidently and ask your boss for a raise if your job performance indicates that you should get one. Also, consider any bonuses in your pay as money to be saved towards your down payment. Don’t go a spend them on rubbish!

Draw Up A Budget
Having a budget is pivotal to managing your finances. You’re never going to get far if you don’t know how much money is coming in and out of your account each month. Consider what things you can cut back on. This might be things such as meals out, holidays, nights out, etc. Once you have a strong financial plan in your head, it might be time to calculate how much you really need to save. You’ll probably want to take a look at some fixed rate mortgage info too when doing this.

Keep A Good Credit Score
If your credit score is rubbish, then you’re not going to be able to qualify for the best mortgage rates available to you. Be sure to pay your phone and cable bill each month! People’s credit ratings can plummet from being lazy and late with their bills – don’t let that be you! If you already have a low credit score, there are ways you could go about boosting it a bit. Each month, make a few big purchases on a credit card. Set aside the money from your current account to cover these purchases. Then, at the end of the month, pay them on the day that your bill comes through in the mail. Gradually, your credit score will increase. Plus, credit card companies see that you are in fact responsible enough to meet your repayment deadlines. This will put you in a better position when applying for a mortgage on your first home.

Increase Your Income
There are lots of easy ways to earn additional income that you may or may not be aware of. Starting an eBay business is one of them. If you can find the right profit and a spot in the market for it, then you’re away. Profit margins are often quite slim on eBay, but the volume of orders you can receive is vast – be sure to at least give it a go. If you possess great literary skills, then freelancing writing is also great to earn a fair bit of extra money outside of your day-to-day job. There are websites dedicated to finding and hiring skilled copywriters. The best part is, this can be done from your laptop at home in the evening. Just make sure you’re doing something to earn that little bit more while saving for your first home.

Sell Any Assets
There must be some things lying around your place that you could sell to make a bit of extra cash towards your down payment. You may have a few bits of expensive technology that could earn you a cool thousand dollars. Perhaps there are some valuable antiques lying around that you had no idea were worth hundreds. It’s worth trying. Be sure to cash in any gold at a pawnbrokers, too. Lastly, if you’ve got an expensive car, that is simply yours just to look flashy, then it may be time to give it up. You don’t have to stop driving altogether, just downsize on your vehicle so that you can eventually upsize on your home.

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