Buying a home requires a substantial amount of savings for the process. Buyers tend to forget that they should not only focus on saving for the initial deposit, there are also closing costs included and even some repairs that need to be done before moving in. As a property management company, we understand that having a healthy amount of savings can be hard. Here are some of Landmark's recommendations to buy your future property sooner!
1. Budget.
The first step to saving money is to budget! If you already have one, improve it. Make sure you know where your money goes every month so you know where you can actually save on. Start by analyzing your bank and credit card statements and locate where you are spending most of your money. See how much you are spending on necessities and then note how much you spend on all the “extras”: think movies, entertainment, restaurants and even online shopping. Once everything is categorized, analyze the areas where you can cut back. Set a realistic budget and try to stick to it as much as possible. By doing this, your dream house is just around the corner.
2. Reduce Your Debt
Saving for a house is more difficult if you owe a lot. Having a high debt can also affect your mortgage. After doing a correct budget, you will realize the importance of reducing debt.We highly recommend reducing your debt as much as possible so you can focus solely on acquiring your dream home.
3. Take the money straight out of your paycheck
Don’t wait until the end of the month (or your pay period) to save money. A very common mistake is saving money after we have spent most of it. The best way to do it is by saving your money as soon as you get paid, and then live off the rest. No excuses. If you want to save money, it is the safest way to do it. You will be surprised at how much you can stretch your money. Taking this little step can help you make your first real estate investment. A great way to accomplish this is to automate your savings.
4. Make more money from where you live
Rent out a spare room! If you have an extra bedroom in your apartment, you should seriously consider renting it (if your lifestyle allows it, of course). You can use online platforms (like AirBnB) that will let you organize in advance and only rent out whenever it is convenient for you. You can even block out dates when your rental isn't available. Same goes with a garage, if you are not using the entire thing, you can turn it into another income stream.
5. Pause your retirement savings (temporarily).
Before you continue reading this part, make sure you are not even close to retirement. However if you are at a young age that is constantly adding money to a retirement plan like a 401k or IRA, you might want to consider temporarily pausing this. It might be a good idea to redirect some of this money for a short period of time. It could make a huge difference in how quickly you can save for a house.
6. Cut out bad habits
By cutting out bad spending habits you are not only saving for your first house, you may also be quitting unhealthy habits (whichever they might be). These habits can go from smoking, to excessive online shopping, to spending too much money on take out. Analyze your day to day, and you will quickly realize that you may cut out a bad habit and save money by doing so
7. Ask for a raise
Provide more value at work, then ask for a raise. You should constantly be looking at how you can provide value both in your personal and professional lives. Once you’ve identified an opportunity at work, go for it! Track your progress and how it affects the company’s bottom line. Once you have proven your value to the company, asking for a raise is a lot easier! Good employers should acknowledge your hard work and reward you accordingly. Make sure to prepare yourself before heading into this discussion by gathering performance data and documenting your value to the company.
If you need help, have any questions, or are interested in learning from the best property management company in Chicago, don’t hesitate to reach out! You can contact us at Landmark Property Management via phone at 312-313-8553 or send us an email at office@landmarkrgc.com.
