Owning Your Own Home: How to Save for a Deposit

Are you dreaming of the time when you get a set of keys to your first home? Many people can’t wait to experience the joys of being a homeowner; while there are many responsibilities, it is so nice to decorate the way you want and know that the house is yours for as long as you want it.

However, in order to turn your dream into a reality, you need to begin saving for your deposit. You may find assistance in the way of a homeowner’s grant and/or stamp duty exemptions. However, that will not cover the entire deposit, which needs to be at least ten percent of the purchase price. You may have to come up with anywhere from ten thousand to thirty thousand dollars. Here’s what you can do to start saving today.

1. Take out a portion of every pay check.    

It is a good idea to save ten percent of everything you make at your job. Put that money in the bank before you spend it on “extras” like entertainment or clothing. Once it becomes a habit, you won’t even miss the money.

If you are truly serious about saving, set up a separate account to house your money. Make it a lender that you do not have access to all the time, so that you are not tempted to run by the bank and get out money. Put ten percent of each pay check into this account. Recognize that you may need to sacrifice a bit, but keep your end goal in mind. If you need enough and want to make the most of what you save then you may need an offshore bank account. When that house is finally yours, you will be glad you made this decision.

2. Utilize eBay.

A great resource for making a little bit of extra money is eBay. We all accumulate “stuff” over the years; why not declutter and try to make some money at the same time? Believe it or not, many household items, like CDs and clothing, sell well on eBay. You may be able to make a tidy sum that you can add to your house account. If you are unsure of the best way to go about this, check out sites like www.skipmcgrath.com for assistance.

3. Get rid of debt.

You may not think of this as a savings tip, but the less debt you have, the more you will be able to save because you will not have interest payments looming over you. When you pay off your debt, lenders allow you to borrow more money. In addition, you have more cash for your mortgage repayments. So, sit down, look at your finances, and figure out a reasonable budget.

4. Stick to what you need.

There are many things that you probably want. However, if owning a home is important to you, put those things aside for now and focus on what you need. Set a strict budget and cut back on eating out, going to shows and other little luxuries that are not a necessity. Take what you save and put it right into savings. Remember, it is still okay to treat yourself. You do not have to live like a hermit until you buy your home. But, if you make sacrifices, you can save a lot of money over the course of a year. You may even be able to put away thousands of dollars!

A few ideas to get you started are:

Cancel your cable service and subscribe to a monthly service for one low fee.

Pack your lunch for work instead of eating out.

Refrain from buying new clothes for a few months.

Do not go out for drinks.

5 Find additional work.

If you really want to save, and you don’t have a lot of extra money as it is, think about finding a part time job. The money could really add up; think about what you are good at and what type of time commitment you can handle. Then, go from there.