Saving for an investment property doesn’t have to involve huge sacrifices, but you are going to have to make some lifestyle changes if you want to reach your savings goals sooner rather than later. These are a couple of tips that may seem pretty simple, but if you have a savings goal in place every little bit helps! The important thing to note for these tips to be as effective as possible is the plan that you need to have in place. It will keep you focused and concentrating on your efforts to reach your savings goal and the goal of your own investment property.
- Consider where you can cut back – and then do it.
- Do you stop for a coffee every morning? Even though it doesn’t seem like much week to week, your daily caffeine shot could be costing you up to $1000 a year. Think about what that could do for your deposit and savings. Instead of getting a coffee out, think about investing in a good podded coffee machine for home, or switch to instant (just for a little while) and get yourself a reusable takeaway cup. These small savings will make a difference in the long run.
- Are you spending money on unnecessary expenses like a huge data bill for your phone, lunch outside the office, gym memberships or even things like extra expenses that you don’t use often? Take stock of where you’re spending in your life and consider where you can save. Yes, every bit helps.
- Save in a high interest bank that you can’t touch.
This works because you can’t access the money in your account for impulse buys or last minute purchases. Think about setting up a direct debit for the amount that you want to save each month or week, and then if you can add more to it – great.
- Set up a good budget.
There are a lot of budgeting tools around online and available from your bank. If you’re rubbish at saving money, and not sure where your monthly wage is going, consider enlisting the help of a professional who can guide you in creating a budget for yourself. This can be a real eye-opener for anyone who’s never budgeted before (you may be astonished how much money you spend on eating out!) and can be really helpful.
- Make some extra money on the side, and then save every bit of extra that you make!
If you’re existing fine on the wage that you have right now, but know that with your skill set that you can freelance or do some cash work on the side, then do it! And then to ensure that you don’t blow out on the extra money, set up a direct debit for the exact amount extra that you’re making. This is a great way to inch closer to your goal.
- Grow your business/decrease your costs.
If you’re self employed, think about how you can decrease your costs or increase your client base. No matter what you do, if there’s extra money that comes about as a result of your actions be sure to save every bit of it so that it’s not a wasted endeavour.
- Save at home.
If you’re currently living in rented accommodation on your own, think about moving into a shared house for a 6-12 month period, just so that you can save with a vengeance. It will be worth it in the long run when you’re the happy owner of a new investment property.
There are other ways to get a deposit together, like accessing the equity in a home that you already own, but if you’re putting the money together for your first investment property or first house purchase, then you need to be frugal, a savvy saver and most of all focused on your goal. Good luck, and happy saving! If you want more help with your property investment goal setting, get in touch with us today for a complimentary consultation.