How to Save Money to Get Your First Home

It can cost a lot of money to purchase a home in Ottawa, especially depending on what area you choose to live in and how big of a property you want. That’s why it is crucial that any future buyers of new homes in Ottawa save their money in advance of actually buying a house. Check out some tips on how to do this below:

1. Start a Savings Account

For starters, you need to open up a savings account. You can either do this online or go straight to the bank where you do all of your current checking. It’s best, though, to use only one institution since the average bank lets you switch money between your accounts electronically. This is ideal because you won’t have to visit a branch every time you want to transfer your funds or add money to your savings account.

2. Create a Budget 

The most simple way to start a budget is by creating a spreadsheet. This spreadsheet will show you your monthly gross income and let you take away any taxes or costs you incur from that number along the way. That way you are ultimately left with your net income after taxes. Also, you should type out any other monthly costs you tend to have like rent, car payments and credit card bills. Again, you will need to subtract these numbers from your total income.

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Once you do that, you can see exactly how much money you have left every month and then decide how you want to spend it. So, begin keeping any receipts you may accumulate from things like restaurants, parking, entertainment and gas. In just a short amount of time, you will be able to see how much money you actually bring in and how money you let go out.

The only way to really save money so that you can purchase a home is to bring in more cash than you spend, or change your spending habits altogether. Also, always search around for new savings sources. This can be tough, so always set a time to look over your spending and budget. Go through the amounts and make sure that each penny spent was worth it.

3. Take a Look at Interest Rates

Interest rates vary greatly for different things like savings accounts, credit cards and car loans. That is why it is best to sort through all of your bills and see what the interest rate is for each of them. Then, determine if you could do better. In fact, you might even get a lower rate by simply asking the business at hand. A lot of times credit card companies will offer a lower rate to those who make full and prompt payments.

  1. Save Little-By-Little

While in an ideal world you would spend less money to bulk up your savings, that’s not always practical. That’s why you should take advantage of those events in your life that rake some extra money into your life. This means birthdays, tax refunds, bonuses and even weddings. Even though you may want to splurge a little bit when this fortune comes your way, you shouldn’t. That is money that can increase your savings account very quickly without going right into your regular income.

Most individuals talk endlessly about owning a new home in Ottawa one day, however many can’t actually afford this luxury. That’s why saving up is so important. When people use the tips above, they will see their dreams of owning a house turn into a reality. Remember, it’s all possible as long as one is responsible, money conscious, practical and willing to make sacrifices.

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