Many who rent their current living space, do so with the intention of one day saving up to buy their own home. Buying a home is a big step and it is most likely the largest single investment most of us make throughout the course of our lifetimes. However, saving for your dream home while renting can feel overwhelming. On top of rent, other expenses can eat away at the money you would like to be saving. Don't fear, we have compiled tips to help make saving up for your new home seem less daunting.
1 Define Your Goals
Before you even start saving for a downpayment, it's critical that you clearly define your goals. How much are you willing to spend on a home? Where do I want to live? How large a downpayment are you planning to make? Answers to these questions will help you create a savings plan and add clarity to your purchase. Once your homeownership goals are defined, you can approach your home ownership goals with clarity.
2 Plan Your Savings Timeline
Once, you have defined your goals and decided on the timeline of your ideal move, you will have a clear vision of how much you need to save each month. Stay disciplined, stick to your savings targets and remember the more time you spend saving, the less your mortgage will cost you. Give yourself time. Don't rush!
3 Cut Unnecessary Expenses
With rent in Canada's major cities coming at a premium, you might have to sacrifice some of your indulgences to meet your savings goal. We suggest jotting down your current needs and wants on a piece of paper. Is there anything that can be moved to from the needs to the wants column. Are there things you are willing to do without altogether? Can you save money by switching service providers for things like TV, internet and home phone? Is that vacation worth it this year if it means we have to delay buying?
A house is a large purchase to make while renting and it might require that you live without some of the luxuries you have become accustomed to. At Least for the time being.
4 Look for financial assistance from friends or family.
We all know how difficult saving while renting can be and so do those around us. Those around you might be willing to help you transition into this new chapter of homeownership. Your family and friends might be able to loan you some money to help out your cause. Even if they aren't able to provide you much, support from family may be able to shave months off of your savings timeline.
5 Start a Side Hustle
A good way to accelerate the savings process is by starting a side hustle to supplement your income. Do you have any hidden talents, small business ideas or passion projects you've placed on the back burner? You might want to consider monetizing them to increase the speed at which you can reach