2021 is a chance to set some new goals professionally and personally, and one of those goals for you might be to finally take the leap and start saving for your first investment property.
There has never been a better time to invest in property with low-interest rates.
Here are our top tips for saving money for that important investment.
Sacrifice
Those little things that stand in the way of saving money. Maybe it’s your morning latte or perhaps your daily lunches outside the office.
Look to make small daily changes by creating a budget and sticking to it.
Try and make your coffee and lunch at home for at least 4 days out of 5 and see how much money you can save with these small changes.
Pay the bank of “me” first
It may feel a bit odd paying yourself first, before anybody else, but this is the surest way that any extra dollars and cents don’t end up being frittered away.
Establish a set amount (10% is a good starting point) according to your budget and faithfully put it to work collecting interest.
Transfer each fortnight or weekly when you get paid to a different bank account, preferably one that is a little harder to withdraw money from.
Make More Money
This was probably the first thing you thought of when you were looking at your finances and thinking about how you could save more money.
There are lots of ways to make extra money:
- Get a second job in the evenings
- Leaving your job for another higher paying one
Or if you’re self-employed:
- Taking on a partner to help you grow your business
- Raising your rates
- Cutting expenses
- Finding more clients
Adjust your housing
Depending upon your situation and your mindset, one strategy that is becoming more common is house sharing to reduce expenses.
Many people move back in with their parents or even with friends to cut costs and save for a deposit.
You may want to rent out a room in your house or downsize for a couple of years to allow you to reach your goal.