Mortgages. Turn Your Pennies Into Pounds
House prices continue to rise. =ECFirst time buyers continue to
struggle to get a hold on the property market.=EE The headlines
in the newspapers must make depressing reading for would-be
first time house purchasers.
Ten years ago around =A34,000 would have been considered a
reasonable deposit on a house. This figure has reportedly risen
to around =A312,000. No wonder the average age for a first time
buyer has gone from 30 to 34 years old.
There is nothing for it but to get down and save. Forget the
=ECI’m spending nothing this week; I’ll do with out a
holiday/work through my holiday, even.=EE This is unrealistic,
you won’t keep it up. It would be much better to start to save
in a realistic manner, making cuts in spending wherever
possible.
One of the first tasks to sort out is exactly how much you can
commit yourself to in the way of a mortgage. This will give you
your figure for the deposit and you’ll be able to work out the
monthly mortgage repayments. The internet is the best place to
look to compare mortgage details and give you an idea of what
you’re aiming for.
If you keep a record of your spending you should be able to
sort out just what you’re spending your money on, and maybe
there could be some things you could cut back on. Just by
writing things down you could become more conscious of where
your money is going and it will probably help you to spend a
little less.
Are there any small amounts of money about? Maybe a small
savings account you’d forgotten about, or even your old
money-box. Gather these together and add any spare money, it’s
surprising how the cash can mount up.
What about a typical day at work. Do you grab a coffee on the
way? This can mount up to around =A315 a week, =A360 a month and
=A3720 a year! If you’ve a long journey and you really can’t
survive without a coffee, then it only takes a few minutes to
make a flask up. It’s quite a saving. Buying lunch out is
expensive and during a busy day at work, it’s easy to get
distracted and end up choosing something more expensive than
you intended. Pre-packed sandwiches are usually quite expensive
but a worthwhile saving can be made by making and bringing in
your own.
There are quite probably some monthly debits you’re paying for.
The magazines you don’t really read any more. The club
memberships you really don’t need and can’t justify. Cancel
them.
Assuming you’re responsible for at least a share of utility
bills, make all the economies you can. Turn off some of those
unnecessary lights, unplugging appliances and save water by
turning taps on for a minimum of time. It’s more economical to
shower than to bathe. Turning down the heating a notch or two
may be possible. There are sometimes discounts for paying
accounts in full when you get a bill, rather than paying extra
to pay in instalments, for your car insurance or suchlike.
Maybe this would be a good time to check that you’re not paying
too much for car or contents insurance? Check the internet for
comparisons.
If you have credit card debts, could you save money by moving
your balance to a zero interest card, which would mean you were
paying money to reduce your actual balance, rather than paying
interest?
Choose a home for your savings. Consider a tax-free ISA or a
high interest savings account. You’ll get more interest by
leaving the money in place for longer so choose one that
requires, say, three months notice, to encourage your savings
to mount up.
Become a penny-pincher. It’s the only way to get on that
ladder!
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