Yes, this is a travel blog and for a very long time figuring out how to travel as much as possible was my main focus in life. But as I approached (and passed) the 30-year-old benchmark, I became more interested in other things too. That’s not to say my love of travel waivered, just that I wanted to find more balance in my life. One of my main focuses was on buying my first property. My husband and I saved very hard and bought an apartment that we currently rent out on Airbnb for a tidy profit. Since then we’ve also bought land and are constructing our first family home. While it’s been a very exciting process, it has involved a lot of sacrifices and changes to ensure that we reached our savings goals. Here are my top 4 ways to save for your first home to get you inspired and on the right track.
1. Find Some Inspiration
The first thing you’re going to need to do is to get inspired. Unless you come from a wealthy family that are able to help you get into the home ownership club, you’re probably going to have make some sacrifices to ensure you reach your goals. This can be challenging, especially in a world that’s so consumption based. I suggest finding some inspiration of what you want in your home. I personally love browsing Better Homes and Gardens MCR Bahamas and seeing all their beautiful homes. Not only has it influenced the style we want for our home, but it also makes me dream of having one of these homes for myself. Some people use Pinterest as an easy, visual way to get inspired. Others prefer to make a physical vision board to inspire them. Whatever you choose, just make sure you keep it at the forefront of your mind to keep yourself inspired!
2. Get Realistic About the Costs
I think the most important thing when you’re saving for anything big like property is to get realistic about the costs. Are you hoping to build? Are you aware of how much the building license will cost and the lawyer’s fee for changing over the titles? These costs might surprise you so it’s good to ask around your friends and family to see what the going rates are. Likewise, if you’re building in a hard to reach the site, you might need to hire some specialized equipment which can really add up. Be sure to take these extra costs into consideration before committing to a project.
3. Track Your Spending for a Month
You’re going to need to track your spending for a month at least – if you’re not already – so you can see where you are spending your money. Without knowing where your money is going, it’s close to impossible to make effective changes to your spending. There are plenty of apps out there that are designed to make tracking your spending easier, I suggest downloading one and tracking for at least a month. Longer is better if you can. If you’re hoping to head away on a holiday while saving for a house, I suggest choosing something like a cruise where all your expenses are included in a fixed rate. This makes it a lot easier to plan your budget and to not overspend, ensuring you maintain your savings goals. If you’re thinking about booking a cruise, click here to get some inspiration.
4. Figure Out What are Your Essentials
Once you’ve got at least a month’s worth of data, you’ll be able to see what parts of your spending is essential – things such as rent, groceries, petrol etc tend to fall into the essential category and what is additional spending, such as entertainment, clothing, your Starbucks bill and so forth. Everyone’s budget is personal to their income and spending, so while I wont make specific suggestions on how to cut down on spending and increase saving, I suggest listing out all your categories and deciding what’s essential and what is a luxury. You might find it helpful to set specific budgets for each category so you can control your spending and ensure you are saving a good amount of money each month.
Buying your first property is an exciting financial decision. The more you can save, the better off you’ll be financially as you’ll be able to purchase with a smaller mortgage, saving you considerable money in the long run. Use these 4 simple tips to get your house savings off to a good start.
