Are you stressed out due to living in a rental house with noisy neighbors or not so decent roommates? Are you fed up of spending most of your hard-earned salary paying rent? Are you maybe wondering how can I optimize my finances to save for a house in a year? Worry no more; as you can save yourself this hassle overall by owning the money to buy a home within a year. Below are simple saving and financial techniques that will enable you to acquire the required capital needed in purchasing your home.
- First Make A Budget
This technique will help you to accumulate your savings and understand where you are financially overall. It may sound simple and obvious, but you’d be surprised how many people do not adhere to their budget. You should first identify the things that you can do without (aka the wants and not the needs. You don’t need that coffee shop mocha every single day, etc). This will help you in understanding and avoiding your overall impulse buying. You should prepare a shopping list ahead of time and stick to it. Buy what is only necessary for this particular time. You can also shop at supermarkets that offer greater discounts (I like Whole Foods too….but don’t be surprised when your whole paycheck goes too).
You may also consider (as described above) making your coffee rather than picking it up from a store, or moving into a less expensive rental house so you can save that extra money, or investing in a car that is economical on gas, or attempting to trim your cell phone bill or possibly even skipping your summer vacation for the purposes of accumulating your savings. The mindset you must have right now is one that is focused on your long term goal, and not short term impulses.
- Look At Getting A Side Gig
It is important that you look for a second job or possibly even more to supplement your full-time job’s income. You may consider venturing into crafts if you have the skill or possibly even start a small business that you can run part-time. The extra cash you get will help you grow your savings. Depending on what your craft is or what you’re selling, you might use platforms like Pinterest, Shopify, Etsy, Instagram or Facebook to advertise your talent. If you are at all tech oriented (or skilled) there are also plenty of sites to advertise your work like Fiverr.com, Upwork and TaskRabbit.
Saving is important, but it may be more important if you invest your savings to make more profits. This is because investments attract more benefits than savings. In order to grow your income, you may consider investing in stocks, GIGs, or bonds. The profits you get from the investment in a year might enable you to purchase your dream home.
- Quarantine Your Savings Account
Whenever people withdraw money from their bank accounts, many unfortunately tend to have problems watching their savings grow; even if it’s before they reach their targeted savings amount. Financial discipline tends to be rare but is vastly important for you, as you should have a dedicated amount deducted from your regular account (or paycheck) monthly to put it directly into your savings account. The savings you’ll receive at the end of the year will be vastly helpful when it comes to wanting and actually buying that dream home. If you want to succeed financially, you need to think ahead and be duly prepared.
- Ask For Support
As it is with any diet program or change in your fitness regime (or overall personal habits), saving money calls for just as much monitoring. You will need the support of people around you in order to adhere to a strict saving plan. Making them know the change in your financial behavior and the reason as to why you are saving will relieve you of the stress of taking them out for shopping or leisure. The less distracted you are from your goals, the more you will be likely to succeed. Communicating this plan to those close to you will also keep you living under your means, which will be vastly important for this time when you’re saving for big goals.
- Set Up Saving Goals
While it is one thing to stay out of your bank account (like we said earlier), it is an essential element for anyone who wants to grow their savings to set due goals. You should develop either weekly, monthly or yearly goals which will enable you to monitor your saving progress. Having goals will also assure that you duly stay on course. If you aren’t monitoring your overall spending, sites like Mint.com might be able to help you as well.
- Downgrading Your Car
Most families do own more than one car. Nonetheless, this can be costly in terms of buying insurance policies, parking fees, gas and actually servicing the vehicles. Little or no money is left to save. It can be economical for you to have only one car and save the cash that would have been used to maintain your other vehicle(s). This is all the better if you live closer to your work in a walkable area, have public transportation close, or if you might even want to look into ride-sharing services (or bike sharing) for work in the morning.
Since living in a rental house (or apartment) can be stressful and costly, almost everyone wishes to have their own home. The biggest challenge of owning one is attaining the money. With a couple of these tips, you could very well be on the way to saving money for your dream home within only a year.