With the new year just beginning, it’s the perfect time to reconsider your financial expenses and find ways to be more saving-savvy in 2022. Especially if you’re looking to start afresh somewhere new, whether you are wanting to move in the coming months, or in a few years’ time, chances are you’ll need to start saving for a deposit and other moving costs. Read on for our tried-and-tested money-saving tips.
Talk to a professional
Before we get into the money-saving tips, if you’re thinking of buying a house in the coming months, or just want some advice, then it’s definitely a good idea to speak to a professional. Regardless of who you talk to before you start house hunting, you need to know exactly how much you can save and borrow. Don’t forget to add on extra for legal fees, moving costs, and documentary stamp tax.
Get a mortgage in principle from someone like Trussle to see what you can afford, it helps to have an outline of the costs you’ll be expecting to fork out. Online mortgage brokers can be advantageous because they typically streamline the process and deal with queries quickly, speaking on your behalf with dozens of lenders and getting back to you within five days.
With this information in mind, you can certainly start to plan more efficiently and create a savings plan that takes into account other expenditures such as renovation costs before you move into a new property.
Open a separate account
One of the best ways you can save is by opening a separate savings account; preferably one with a high-interest rate. Keeping your money in a different account will make it less tempting to spend, and it’ll be nice to see that money increase as you continue with your savings journey.
Whether you’re thinking about getting an online, money market, or a certificate of deposit savings account, it’s definitely best to do your research. Some accounts may require a limited amount to deposit, remain locked until a certain date, and don’t forget to check the perks!
Take part in challenges
There are various money-saving challenges that are a lot of fun to take part in, while also leaving you with a significant amount saved at the end. Here are three of the most popular you can try:
The round-up challenge
Most banks will let you round up the amount of money you spend, putting it in a separate pot as an easy way to save. For example, if you spend $9.49, you’ll pay $10, with the 0.51 saved. If your bank doesn’t offer this service, then check out this article by Forbes which outlines several other options out there for you to try.
The 52-week challenge
As DebtFreeForties points out, the 52-week challenge is a popular challenge that is incredibly simple to follow. Save $1 on week one, $2 on week two, adding one more dollar each week so that when it comes to week 52, you’ll have saved just under $1380.
The 100-envelope challenge
This is a really simple way of saving money. Get 100 empty envelopes and label them 1 to 100, shuffling them up when you’re finished. Now, each day you’re going to pick a random envelope and put that amount of money inside. At the end of the 100 days, you should have just over $5000! You can alter this challenge, so you put in less money, or extend it over the 100 days, it’s up to you.
Saving money can be as easy or difficult as you make it, and the good thing about these three challenges is that they can be adapted to suit your financial circumstances. The most important part of saving for a house is definitely knowing how much you’re going to need, and when you know that you can get started.