There are several different ways to save, put aside and ultimately pile up enough cash to successfully purchase real estate. From disregarding unnecessary subscriptions to putting in extra hours at work, the possibilities and strategies for saving money are endless.
One of the easiest ways to track and monitor your savings is by automating it. In order to “automate it,” create a separate and individual savings account with its sole purpose is to save up for real estate investment. You could even go as far as naming it “real-estate savings”. Then, you can automate savings deposits from your checking account or from your paycheck into the savings account each month. Remember to start with a small amount and to progressively increase the amount over time and as you begin to become comfortable with it.
Another viable option is to increase your income. This includes taking overtime at your full-time job and asking for repayment of any loans you’ve made. On the other hand, you could also supplement your income with a small business. Due to the fact that most work 40-50-hour weeks, there’s plenty of time to pick up a side hustle which can be anything from selling on sites like eBay to freelance work. Therefore, you can bump up the rates of any freelance work you do, especially if that service is “by the hour” and you're limited to a set amount of time. With the help of the law of compound interest, anything and everything counts.
When saving to get into real estate and purchasing property, living with a roommate is one of the most sought out options. Splitting rent with a roommate or multiple roommates relieves a great deal of pressure from your budget and you can dedicate a larger part of your income to saving up for a home. Any discomfort would be worth it in the long run.
Putting your work raises and bonuses into saving is also a lucrative option. Every time you get a bonus or raise, you should increase the amount you’re saving. Begin by figuring out how much the raise increase your paycheck and then set an automatic contribution to your saving account in that amount or half of it. It’s advised to do this with the higher check, so you won’t ever get used to the higher amount because once you get even a taste of it, it’ll make it even harder to do.
Nevertheless, it also important to put aside any extra or unexpected money which includes tax returns, Christmas bonuses, change, etc., to pay off any debt, to be realistic in what kind of house you can afford, to think long-term and give up short-term desires and wishes such as vacations, to stay laser-focused on your goal of buying real-estate, and to prioritize your goal of purchasing real-estate by putting savings at the top of their value system and avoiding any unnecessary purchases and expenses.