A few home truths about building a home and all that surrounds it.
How to Budget When You're Building Your New Home
So, you've decided you want to build your first home, however the task of saving for it may seem impossible. Building your first home is a big commitment and there are many things you should consider as you start to save. However, with some helpful tips and tricks, your home building budget doesn’t have to be scary… you might even be able to squeeze in some smashed avo on the weekend.
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HOME BUILDING BUDGET TIP 1: Set a Goal
Set a goal, write it down, stick to it. A lot of people say they are saving for their new home without really knowing what that means. Once you have your goal, you can work backwards and determine how long it will take you to get there. This will also allow you to break your goal into smaller, more achievable milestones. Saying you are going to save $100,000 sounds daunting, but saying you are going to save $20,000 per year for 5 years is much more achievable. It’s important to make sure your goal is reasonable. If you try to save all your monthly income, you will most likely end up disappointed when you can't.
HOME BUILDING BUDGET TIP 2: Prepare Your Budget
Now that you know how much you are aiming to save, you can prepare your home building budget. The first step here is to prioritise your costs. What do you need to spend each month right now? What can you afford to spend less on? Using a free budget planning app such as Mint can paint a picture of exactly where you are right now and allow you to make tweaks to reach that goal.
You know your goal and you know your home building budget, now it is time to start saving. By setting up a high-interest account that you can’t withdraw from, you’ll be less likely to spend your savings. We would also recommend you review your insurance and utilities to see if you can get a better deal and add the difference into your new, long-term savings account.
Now that you are saving for your first home, speak to our team of mortgage consultants. Our accredited mortgage consultants can arrange a confidential one-on-one consultation at a time and place that suits you.