Buying a home is the single most expensive thing most of us will ever do and it can be a very stressful time. Whether you are buying your first dream home or sizing up to the home you’ve always dreamed of, you are going to need to make some sacrifices in order to get what you want. Dream homes don’t always need a Lotto win, they can be achieved through sheer grit and determination. Here are our best budgeting tips to help you buy your dream home.
The key is in the title – budget!
If you haven’t yet created a budget don’t delay any longer. This form of accountable management of your finances is crucial to having a successful relationship with money. Start by noting down every single outgoing from your bank account(s), the amount debited and the date it is due. For more help click here.
Count everything and keep every receipt
Once you’ve written down your debits from your bank account you need to start thinking about all the other withdrawals you make during the month. Make sure you’re keeping receipts for all expenditure so that you can account for every penny. Whether it’s a daily coffee or a rail fare, you need to include it. Start to create a running total for these extra expenditures, you might want to lump them together or keep it broken down but however you want to do it make sure you start asap and stick to it. I keep a box for receipts in my kitchen and put all of them in there at the end of each day. I also have a folder in my email account which I put my digital receipts into. It is handy for them to be accessible as possible.
Consider cutting extras
If you decide that you are spending too much money on certain areas of your life, such as takeaway food or a taxi when you could walk instead, you might choose to cut these down. Having said that, it’s important to plan in some treats otherwise you might find yourself feeling deprived and then have a massive spending spree. Maybe you can cut out a subscription or two or cancel your gym membership in favour of exercise at home or taking up road running.
Make more money
Another way that might help you to buy your dream home is if you make more money. If you feel you deserve a raise, why not approach your boss and see if they will give you an increase in salary. Or consider starting a side-hustle to bring in more money. You could do online surveys during the evenings or if you’ve spotted a gap in the local market you could provide a service such as dog sitting or sell something you craft yourself. Every penny adds up and will help you go that bit further towards that dream home.
I hope you found these tips useful! Can you related to some of this too? Please do let me know in the comments below…