Times have changed and so have the banks. This was almost expected because people were allowed to borrow far too much money and it was inevitable the bubble would finally burst. Try walking into a bank now as a young person looking for a mortgage and it’s a lot harder than it would have been ten years ago.
If you’re one of these young people I know you don’t like hearing about it because there is nothing you can do now, so what should be your plan of action?
People don’t care enough about saving money for a rainy day. Everyone is told that something bad might happen or that you will need a big chunk of money fast, but nobody cares. Then you walk into your bank and they ask for a large deposit and suddenly your jaw drops and hits the desk. This is how they do things now and you better get used to it. Let’s look at some of the best ways you can save up for that house deposit so you’re not renting for the rest of your life.
Move back home
This might be a real kick in the teeth for you, but why don’t you think about moving back in with your mom and dad until you get enough money together? When you are staying there you will have a good chance to save a decent amount of money and it wouldn’t be too long until you officially had your own place. If you have a girlfriend or boyfriend it might be possible to move into their parents’ house instead. You just need anything to stop you from paying out most of your wages in rent.
You can learn to be a wizard in the kitchen and it will allow you to save lots of money on grocery bills. If you plan your meals carefully you will save a lot of money and you might be quite shocked by how much you spent on food in the past. This obviously means you will need to cook your lunch every day, so you don’t get anything from the shops. Curries, stews, and pasta dishes are all meals you can make huge pots of for cheap and you can freeze the rest for later if you don’t finish it.
Sell your car
Would you rather have a home to call your own, or would you rather have a car that will eventually get old and be worth little money? If you would prefer your own home then think about getting rid of your car because at the end of the day you have a nice pair of legs. You can walk to the bus stop and travel to work by public transport like so many other people. There is no shame in that, but if you can’t bring yourself to do it then at least downgrade your car to a banger.
Give up holidays
When a holiday comes around everyone is desperate to go and do something that involves spending money. That could be abroad, across the other side of the country, or even in-state and it doesn’t make a difference which one applies to you. The money will still be spent and it might add up to thousands of dollars. For the next few years, you should accept the fact that the only enjoyment you’re going to get will be lying on a chair in the back garden.
Carry less money with you
Have you ever tried to buy something but couldn’t because you didn’t have your wallet with you? This should be the way you try and do things from now on because you can’t spend money if you don’t have it. All of those little things you buy during the day don’t seem like they cost much, but when you add them all up at the end of the month it comes to hundreds of dollars. If you are worried about what will happen in an emergency then take a credit card, but only use it for an emergency.
5 Ways to Save Money for a House
Buying a house for the first time is a big step and investment. After all, prices are always fluctuating, and such a purchase involves a pretty sizable down payment. However, with some careful budgeting, creativity, and dedication, it is possible to save for such a property purchase. The following are some helpful tips for people who want to save money to buy a house.
1. Be Smart about your Budget
The basics of saving are clear: spend less than one’s income. However, it is important to really look at a budget and decide what is necessary, what fixed expenses are (i.e. rent, loan payments, etc.) and what can be cut. The worst thing people can do is lie to themselves when making decisions about their budget. There needs to be flexibility in case of an emergency or increases in average prices for things like gas or milk. Understanding target amounts to save each month makes it easier to build a budget and stick to it.
2. Make the Most of Savings
Setting aside money out of every paycheck is great, but there are ways to make money by saving money. There are high-interest savings accounts that are easily accessible. One can earn money just by letting their savings mature and accumulate interest. Additionally, investing in certificates of deposit (CDs) is another way to make the most of savings. Certificates of deposit are when one agrees not to touch the money for a certain amount of time (anywhere from a few months to a year). The money will gain higher interest rates than most savings accounts. This is a safe and reliable way to make money and protect yourself from spending it so you can save for a house.
3. Have Rules about Credit Card Use
It is important to understand credit cards, but it is even more important not to overspend on them. Credit cards offer an opportunity to build a person’s credit rating, which can help people obtain favorable interest rates and terms on a home loan. However, overspending on credit cards can make it harder to save. Thus, one should create rules around using plastic for spending. For example, a household could use credit cards only for gas and agree always to pay the balance in full every month. Rules like this protect against debt and help to have a good credit rating.
4. Consolidate Debts
Creative individuals should look at how to cut interest rates and consolidate debts. This might mean refinancing an auto loan or looking into other insurance companies. As a person’s credit improves, he or she should look into alternate credit cards so that old balances can be transferred in favor of lower interest options. Every cent counts when it comes to saving for a home.
5. Streamline Expenses
Lastly, people trying to save for a home should think about creative ways to change their lifestyle to save money. For example, moving from two cars to one saves on gas as well as on auto insurance and other car payments. Other options include switching light bulbs to energy-efficient options, making holiday and birthday gifts by hand, and being creative about vacations. You don’t have to starve yourself of fun when saving for a home, but it helps to really think about creative ways to cut costs.
To save money for a house, people need to take a good hard look at their income and expenses. Even small changes can increase savings. Look for a bank that is going to give you the best deal on your home loan.
Home loan deals and rates often change, so be sure to look out for competitive home loan rates. If there’s a great deal, don’t be afraid to switch to it.
3 Ways Credit Counseling Services Can Save Your Finances
Stuck in debt? It’s time to clear it as soon as possible. If you don’t know what to do, it can seem like an endless spiral of destruction culminating in your complete and utter financial ruin. It is depressing, but there is help available.
Credit counseling services help to guide you out of debt and into the black. Plus, they can also work with you to develop positive financial practices and attitudes for the future. Read on to find out about how credit counseling services can aid you.
Understanding Your Debt
It’s surprising just how many people don’t understand how or why they are in debt. Not everyone ends up in debt because of poor spending habits. Hidden charges can sneak up on the best of us.
Credit counseling services can offer guidance in three different areas; household, bankruptcy, and credit. These three areas are very similar but have their own nuances.
Choose the one which suits your situation and you can receive advice on where your money goes. An expert advisor pours through your statements and informs you where each transaction goes and why. This reveals any hidden fees you didn’t even know you were paying.
It’s also part of your education. Debt is the ultimate enemy. Understanding debt is the initial step on your road to financial peace of mind.
The proactive approach is to enroll in a debt management service. Instead of going on your way and spending in the way you feel best, an approved credit agent will teach you how to spend effectively. They use creditor-approved methods to make sure you can cope with your debt whilst not compromising your quality of life.
Although all those debts look complicated, once you begin to understand the various routes the main obstacle to debt clearance disappears. Ignorance is why debt can seem overwhelming.
Not only will have a better grasp of your situation, and a firm solution, get rid of the debt at a faster rate also improves your health. Never underestimate the detrimental impact of debt on the human mind and body.
Education, Education, Education!
Some say the number of bankruptcies would decrease if children learned about financial matters in school. And this is true. Too many people seeking credit counseling services are there because they have never understood the most important aspects of finance.
This is why these services can give you an education in bankruptcy, avoiding it, and rebuilding your monetary affairs over a sustained period of time. These small courses set you up with regular financial classes in your local area and connect you with financial tutors; many of which have gone through these same situations.
And there are also online counseling services where you can get a less in-depth education, assuming you don’t have time to attend classes.
An education will ultimately give you a long-term solution to your problems, whilst counseling focuses on your current situation.