Thursday, September 02, 2010 -
By Richard Farrell
Special to Relocation.com
Life's experiences are pleasant in many ways when correctly planned. Saving for a specific purpose, such as a down payment can be possible too, if approached logically, and with determination and resilience. Take for example moving to a new home and the many costs associated with that move - some of these are unavoidable (say, hiring movers), while others could be reduced or even avoided if you take a little initiative (researching before you hire someone).
Down payments do not happen by themselves – they require a disciplined approach as you cut down on expenses and put money away every week. This, of course, doesn't happen overnight but with a plan, a new saving account and a budget, you will quickly be on your way to the home of your dreams.
• Speak with your preferred financial institution and research their product offerings with a no-nonsense approach in mind. Select a product with the best interest rates and lowest bank charges. Consider risk too – higher interest rates may be associated with greater risk, and you do not need to assume a gamblers profile here.
• Open a separate savings account or an ING account that will be specifically for the down payment on your home. You could use the same model for any form of saving, as long as you have the resolve to plan for and keep to a savings habit that will eventually be your dream-come-true.
• Find realistic ways of saving and accumulating funds in a practical and efficient manner. Resist the urge at any time to dip into reserves – or your dream of a down payment will never happen.
Some Tips to Save:
• Identify all your regular expenses, and then re-visit each one, with a view to downsizing or even eliminating should it be an avoidable luxury. Channel all monies saved in this manner to your new special bank account and resist the urge to spend what you have saved.
• Find some fun ways of making extra money. A part time position after hours perhaps, or, if good with your hands some creative way of making and selling something that people will buy. Art is another possibility - what about exploring your handyperson talents here?
• Get the family involved so that everyone becomes part of the plan, and can feel justly proud upon achievement of it. This will allow children to learn some good life-skills by participating and following your good example.
• If food shopping, consider less fancy food and put the saving away. Don't eat out as often or purchase lattes every day. Challenge other consumable purchases too – are they really necessary? Bank these savings too.
When you have made your decisions, stick to them through thick and thin. Say "no" to distractions – they are simply going to make your plans for a down payment a non-event. Look forward to the pleasure of achieving your objective, making that down payment and moving into your new home. When you have successfully saved once, future savings will be easier. You could buy a car next time, or travel overseas.