Buying a home is a major milestone towards adulthood for most people. However gone are the days when you could just turn up to the bank and score a 100% loan. Today banks want to see evidence of some genuine savings before they hand over the cash to fund your first home.
If you want to have your own little place to call home you will need to save up at least a 10% deposit. Now with the soaring prices of property and rapid increase of general living expenses, many people have a tough time saving up enough money for a home deposit – actually it feels near impossible. However with strategic planning and budgeting you can turn your dream into a reality. Here are four ways you can save more money and build your balance faster.
1. Get Other Debt Out of the Way First
It is hard to focus on saving the money you need for a home deposit when you are overwhelmed with trying to pay off all your other debts. If you have debts with high interest rates, such as credit cards or personal loans, you are better off putting all your money towards paying these debts off first. By paying these debts off first you are saving yourself a lot of money on interest, money which can be better put towards a home deposit. Once all your debts are paid off, open up a new savings account and put any money that you would have put on your old debts into your new savings account – watch how fast your deposit grows.