We wanted to go through some common reasons as to why you can’t save for a deposit. So, let’s get into it.
1. You don’t know how much you need
Ah, setting goals. We’ve all heard about needing to set goals before embarking on what we want to achieve, especially when its finance related.
However, there’s a reason for needing to know what you want to achieve and how long you it should take. Think about how much you’ll want to save, whether this is 10% or 20% of the prices of houses you’re looking at.
We know it can look like a scary number, but setting a goal of saving a certain amount each pay helps chip away at it. Know how much you can afford to put aside, then add to it whenever you see an opportunity.
2. You’re not budgeting well enough
Yes, we mentioned you need to set your goal and put money away – but how can you do this efficiently? We’re about to throw that other word at you that’s bound to make you flinch. Budgeting.
It’s easy to say you need to put money away each pay, but how much? You don’t want to be putting in more than you can afford to, but you also don’t want to not put enough into savings that you might not reach your goal in your timeframe.
Knowing how much money you have coming in, versus how much that needs to come back out, will give you a good idea on how much you can comfortably put aside for the home deposit.