In our previous post “How to Determine Your Budget”, we outlined the 4 basic steps in how to calculate the amount of money you should be saving per month to put towards your first home deposit. While determining your budget is quite straightforward, sticking to your budget can be another matter entirely and more often than not, saving money is easier said than done.
To give first home buyers the best shot at staying on track with saving for their home deposits, here are 5 tips that can help you to stick to your budget.
1. Using cash can be a great way to stick to your budget. Each week take out the exact amount of cash you need to cover the expenses you have identified. Having a tactile connection to your money can go a long way and can even prevent you from spending money on items that are not in your budget.
2. We are only human here so we can admit that there will be occasions when temptation strikes and you will want to make that impulse purchase on an item that falls outside of your budget. To give yourself the best chance of sticking to your savings goal, give yourself a few hours or even an entire night to think on the purchase in question. If you have stopped thinking about it, ita’s obvious that you can live without the item.
3. Another way to stop temptation from spending money is to re-articulate your goals to yourself. Think about the fact that you started saving money so that you can afford to get into your first home. Reminding yourself of your homeownership goal will make it easier to work towards it.
4. We have all had a piggy bank at some point in our lives, do you remember how exciting it was to see all of your loose change add up to a decent amount of money? Sure you might now have a piggy bank now but think about the use of other reminders, like pictures of your how imagine your first home to look like. Setting up visual reminders of your savings goals are powerful tools that can help you to stick to your budget.
5. We all deserve little rewards now and again, especially when first home buyers are working on a long term savings objective. Small rewards can actually help you to stick to your budget in the long run, so think about a reward that will really satisfy you, whether it be a night out with friends, going to an event or going shopping so that when you get a month or two into your savings plan, you can look forward to your reward.
Have you been struggling to get into a home of your own because of financial difficulties or bad credit? At No Savings our goal is to open the door to home ownership for as many West Australians as we can. We specialise in helping first home buyers who have had trouble obtaining finance before with our no deposit home loan options. Contact us today and see if you qualify.