Cutting back on expenses is inevitable for first home buyers looking to get into a home of their own. It will come as no surprise that resisting the temptation to go shopping, for those mostly unnecessary and excessive items, is one of the biggest hurdles that prevents people from saving for their first home deposit. Here we take a closer look at shopping and how first home buyers can cut back on these expenses.
Do an inventory check
Many people will have opened up their wardrobe doors and been unable to determine what’s really in there due to the sheer mass of clothing in front of them. Because of this failure to realise what items we already have, we go out shopping and procure more, sometimes doubling up on items instead of putting that money towards our first home loan.
A good way to stop shopping for unnecessary items is to do an inventory check to pick out the items that are no longer worn and to identify pieces of clothing that you simply forgot about.
Wear your favourite items
It is common for people to rarely wear the pieces of clothing that they like the most typically because they cost more money and people are fearful of ruining the item. Instead of wearing their favourite clothes, people will go out and purchase the cheaper equivalent of their favourite items for everyday use. Apart from being less satisfied with the inferior item, this is a considerable amount of money that is being wasted. Cutting back on these shopping trips can save first home buyers hundreds of dollars per month
Turn off the temptation
We all know how tempting it is to purchase something when there is a sales offer or a free item that accompanies a purchase. What’s more, we experience this a handful of times each and every day when we look down at our phones and see one of the brands we are subscribed to via our email address. When people are trying to save money for their first home deposits, cancelling subscriptions to retail newsletters and deals websites is a must.
Do the math
This is perhaps the best way to get a feel for the amount of money you spend on unnecessary items. If you earn an hourly wage, do the math and calculate how much of your time and effort will be used up by a potential purchase. Isn’t it startling that three hours of your work might barely cover the cost of one meal at a decent restaurant? One month of eating out on the weekends can cost you more than $600. That $600 can make a good dent in your first home deposit.
This is a great way of understanding your spending and it will help to reduce the temptation to spend money.
Have you been struggling to get into a home of your own because you’re finding it difficult to save enough for a deposit? At No Savings our goal is to open the door to home ownership for as many West Australians as we can. We engage finance experts who have experience in helping first homebuyers who have had trouble obtaining finance before or who could benefit from access to No Savings home loan options. Contact us today and see if you qualify.