The first step towards owning your own home is the deposit. Interestingly, this first step is also where most people give up and make the conclusion that purchasing a house and land package is non-viable. There is an idea that saving for your first home comes with great sacrifice within your everyday life. This is not the case. Contrary to popular belief, homeownership is very achievable when you have access to the right tools and knowledge.
There is a stigma around budgets correlating to a strict, boring lifestyle. This is not true. It’s likely that you already have a budget of some form. But if you want to see progress in your savings, a defined budget is the best way to confirm where you stand financially.
Calculate your expenses versus your income and see what you have leftover. This figure is what you have left for spending and saving. Breaking down your pay into set amounts and having separate accounts for bills, savings, and day-to-day spending is also an easy way to keep yourself accountable and always be aware of exactly what you have.
It is important to understand that life happens. There will be occasions when you may struggle to put your usual amount into savings. Getting into the routine of putting money into savings as soon as you get paid is a wonderful habit to create. There may be times where you can only transfer a small amount into savings due to unplanned expenses. Understand that this still progresses towards purchasing your house and land package.
You may have heard advice about cutting back on the small unnecessary expenses when trying to save money. This may be your barista-made coffee every day or your gym membership. To an extent, this is perfectly good advice. The majority of people have expenses that are classified as luxuries that could be cut back. However, you don’t have to cut out everything.
If you are cutting out every single thing that makes you happy and adds value to your life, it is going to have an adverse effect on you. You will eventually get sick of living off canned tuna and rice and you’ll likely stop saving altogether. Instead, weigh up the expenses that add the most value to your life and see how you can alter them to save a bit of money, or keep the expenses that are a priority to you (within reason) and take away those that aren’t as valuable to you. This is more likely to keep you happy and motivated about saving for a home in the long run.
There is so much information on managing finances, saving your deposit, and what you need to think about for a house and land package. The best part is you can find a lot of it free! Take advantage of blogs, podcasts, Facebook groups, and online resources that may be of value to you. These resources can help inform you, keep you motivated and accountable, and connect you with other people that may be in a similar situation or are striving for a similar goal.
Talking to a professional may seem daunting however it is sometimes the best way to gauge where you are and where you need to get to. A professional will let you know what criteria you need to meet and what your various options are.
Our professional team at WINNING First Homes will guide you through the entire home building process. We want building your first home to be as stress-free as possible. Our team provides valuable guidance on Perth house and land packages to turn your confusion into clarity. For more advice, connect with us today.