Everyone wants their own home, but having enough money for the down payment is tough. Saving enough money for the down payment is one of the biggest hurdles for many people.
Have no fear though; here are 4 strategies to try if you’re struggling saving for a down payment:
1. Earn interest on your savings.
Open a high-interest savings account not linked to your debit card. Shop around, then choose the institution that offers the highest rate of return.
2. Master the scrimp and save
When saving for a home, scale back everything you spend money on. For example, choose cheaper retailers when grocery shopping, renegotiate internet and cable packages, and say “no” to unnecessary travel.
3. Make ever other month a no-spending month
Buy only what is essential during these months. For everything else, either fix or make it yourself or find alternatives. Every 2 or 3 days, tally up what you would’ve spent, and toss that into your high interest savings account. Don’t fall into the trap of labelling everything as essential; if everything is essential, then nothing is.
4. Take advantage of non-registered savings plans through work
With a non-registered savings plan, your employer automatically deducts a certain amount from each paycheque and deposits it into a special account. Just make sure you are clear on the rules, so you can access your money when you need it.