How to save for a house in 5 years (part 2)
In the first half of this two-part series, I shared five foolproof strategies to show you how to save for a house in five years. Here’s five more to fast track the dream of owning your own home.
6. How to save money for a house: set clear goals
A goal without a plan is just a dream. According to Google, those words can be attributed to several people.
Imagine getting on a plane where the pilot knew they had to get you to London, only they had no flight plan. Their ‘plan’ was to wing it, and hope for the best. Would you get on that plane?
Goals tell you where you’re going. Plans tell you how you’re getting there. They also serve as a compass, guiding you towards your goal.
About to hit up Woollies to get groceries for dinner? Considering a quick route change to a sushi spot because it’s easier than cooking? When you consult your plan, you’ll quickly see you’re heading off course. Your plan will help you course correct, and stay on track to reach your goal.
New habit alert: check in regularly with your plan, course correct, and you’ll stay on track.
7. How to save money for a house: put your goals on paper
Want to smash your goals even faster? Write them down. It’s a great way to make your goals more concrete, and you’ll be 42% more likely to achieve them.
Billionaire entrepreneur and marketer Grant Cardone famously writes his down twice a day. First thing in the morning, and before he goes to sleep at night. He believes starting and ending the day in this way keeps him focused and motivated. Kinda hard to disagree with someone whose bank account ends in nine zeros...
Here’s the thing: the more time you spend immersed in your goals, the more excited you’ll get. You start to think about life with the things you want to spend money on. Which makes you want to cut back on the things that don’t matter.
Bottom line — articulating and revisiting your goals are the basis of mindful budget planning.
8. How to save money for a house: accountability
New to setting goals? Following through not your forte? Identify an accountability buddy who will whip you into shape if you don’t follow through. Choose someone who’ll go on the ride with you. Then tell them exactly what you plan to achieve, and by when.
Give them permission to crack the whip if you don’t deliver. Knowing there are external consequences for missing your goals will motivate you to stay on track.
And if you don’t want to bore your friends with all the gory details, I’ve got you. My financial coaching service is designed to help you stay on track (whip cracking not included).
9. How to save money for a house: make a vision board
If you’re looking to get your craft on, vision boards might be just the thing. In fact, they’ve been proven to help people achieve their goals. Why not bust out the modge-podge and make a vision board about the kind of house you’d like to live in one day?
Really hone in on the 'live in' part. Try to create a collage that portrays your ideal lifestyle.If the idea of connecting with family and friends in your future home lights you up, include photos of your favourite people.
If quiet serenity is your thing, include images of your future reading nook, yoga space, or rejuvenating outdoor space. A vision board is a great way to get excited about your future plans. After all, emotions inspire action. To the craft table!
10. How to save money for a house: keep a lid on your rent
Spending the equivalent of your future mortgage on rent? It’s a common trap, and an excellent way to burn money. You don’t need to have a fancy house on the best street, or live in a highly desirable suburb while renting.
Consider living in a more affordable location or downsizing to a more modest home. Look at it this way: paying $100 less per week adds up to $5200 per year in additional savings. In five years, that’s $26,000 to put towards your deposit.
Got plenty of space and really don’t want to move? Having a flatmate turns lazy space into a money-making machine. Check out Flatmate Finders or Room Mates.
You CAN save for a house in 5 years
Saving for a house can be hard, but it’s not scary. Shift your mindset. Get clear on where your money’s going. Set goals. Your financial future starts now.
And hey — I can help. Check out my values-based budget planning service to see how I can help you fast-track your savings,
For more anxiety-smashing tips on managing your money, check out 'How to save for a house in 5 years part 1' post and 'How to save money in your 30's' post.
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