Purchasing a home is a goal many people work towards every single day. High monthly rent, strict landlord rules, and the satisfaction of home ownership are just a few of the reasons many people want to purchase a home. In Ontario, for example, the average monthly rent for an apartment is $1,580, which means that saving enough money for a down payment and other expenses can seem almost impossible. But, it can be done. Here are a few tricks to help you save money even with high monthly rent.
Stick to a Budget
While you may think that sticking to a budget is fairly obvious, many people don’t do this simple task. According to one study in the United States, only 41% of Americans use a budget. When following a strict budget, you are aware of how much money you have in your bank account and it is easier to say no to desired but unnecessary purchases. Also, you may find you have money left over each month that can help build your savings.
Put All Extra Money Directly into Savings
When you get that end-of-year bonus, instead of splurging on the latest furniture, put it directly into your savings account. This extra money can make a big difference in your savings account and can help you reach your financial goals much faster.
Consider a Side Hustle
The only way you can save is to bring in more money than you spend. While you won’t always get a raise or you may be living paycheck to paycheck, a second job is an excellent way to bring in a little extra money. A side hustle is a small job that you can do along with your regular employment. This can be something as simple as babysitting, taking photos, tutoring, or freelance writing.
Nobody said that purchasing a home was going to be easy. It will require self-discipline and some sacrifice from the entire family. Evaluate your financial situation and determine where you are spending money on unnecessary purchases. For example, if you go out to lunch every single day, that is approximately $10 a day or $50 a week. Instead, you can take lunch every day to work, saving you more than $2,400 a year.
Once you have reached your financial goal and have the money for your dream home, reach out to a Collingwood real estate agent who can help you find the perfect home for your family, lifestyle, and budget.