You’ve probably heard it before, buying a place you can call your own is the biggest purchase you’ll ever make. Whether you’re hunting for a brand new business venture or a space to call your own home, you want to make sure that perfect commercial property or suburban, move-in-ready bungalow is a good investment. And in this day and age of super hot real estate markets, the best investments do not come cheap. So, how do you manage to save the bags of money you’ll need? Here are a few tips.
1. Make a commitment! We all know how easy it is to say we’re going to do something and then not do it, but making big changes - like losing twenty pounds, getting fit, or regularly setting money aside to make a huge purchase - requires discipline and action. So, start your journey towards home ownership by writing down your goals and committing to being more frugal and regularly putting money aside. It might not feel like a lot in the beginning but, as the budget-conscious will remind us, every penny counts!
2. Pay yourself first. There’s an old adage: you won’t miss what you never had. What this means in terms of saving money is that you should pay yourself first by setting up an auto-deposit into a savings account that will transfer money as soon as you’re paid. Then, create a budget around what you have left. This way, you’ll work with the limits you’ve given yourself rather than spending most of your pay cheque and not having any left to tuck away at the end of every month.
3. Budget! Speaking of working within set limits, it’s very important to get a handle on how much money you have both coming in and going out and budget your expenses. This way you’ll be able to establish spending patterns knowing exactly what you have, figure out how much you can save each month, and, best of all, once you know how you’re spending your hard-earned cash, you can figure out exactly where you can cut back (because who really needs to spend $500 a month on clothes?)
4. Live cheaply. It’s not impossible to cut corners. Do you buy a lot of books? Visit the library instead. Like eating out? Scour the Internet for recipes for simple, delicious meals. Take taxis regularly or often use Uber? Bust out your bike, walk or figure out how to ride the bus. The sky’s the limit in terms of how you can trim back your expenses and put that extra cash into a dream fund for your new home or commercial property.
There’s something incredibly satisfying about reaching a goal you’ve worked hard to achieve. Set yourself the challenge to pack away enough cash for that down-payment and you’ll truly be celebrating on the day you finally get those keys.