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We all have to live somewhere and for most people the choice comes down to renting or buying a home. There are pros and cons to both options depending on your situation. Most financial experts agree that owning your own home is a good way to build financial wealth. Use this house deposit savings plan to help secure your financial future and buy your own home.
It’s all good in theory, except it takes liquid assets (cash!) to buy a house. Having enough money for the deposit, closing costs and moving expenses isn’t easy, especially if you are living paycheck to paycheck. If your goal is to one day own a home, then you need to come up with a house deposit savings plan that works for you and your family.
House Deposit Savings Challenge
The first thing you want to do is decide how you are going to save the money. The most common way is to set up a separate savings account, but you can also save cash and keep the money safe somewhere. If you decide to open a savings account, look into one that is connected to your checking account. It’s very easy with apps these days to transfer money between accounts. You want the savings process to be easy as possible. If you physically have to go to the bank each week, you’re less likely to do it. Look at online or app banking to make things easier.
Next you want to pick when you will start your house deposit savings plan. You don’t want to choose a time that will be difficult for you, like around Christmas or children’s birthdays. It’s going to take time to get into the habit of saving money, so you want to make sure you give yourself the time it will take. Set yourself up for success!
Then comes the hard work – saving! It might not be easy to start with, especially if you’re not used to budgeting. If you are struggling with budgeting you might want to check out these awesome books about finances and budgeting – here.
So here it is – your very own house deposit savings plan! Below is the break down of what you need to deposit into your savings account each week to save $5,000 in less than one year! Awesome, right?!
Stick with it!
The most important thing to remember is to stick with it! There are some weeks where unexpected things might happen and you won’t be able to save the full amount. That’s OK, just save as much as you can afford and get back onto the plan as soon as you can. The worse thing you can do is let a bump in the road derail your financial plan. You will get back on track, you just have to be patient with yourself.
I’d love to hear how you get on with this house deposit savings plan, and any tips you have for others wanting to try it.