21 Ventures

• Bank Loan Personal Loan Save money for a down payment

Get on top of your finances

It can be difficult to keep track of what things actually cost Many small sums can easily pile up, making it difficult to save enough for a down payment on a house

One way to take control is to actually start writing down every purchase and any other expense Make sure you chose a system that is convenient to you, otherwise you will probably lose steam halfway through the month You can use a traditional paper notebook, make notes in your mobile phone, save all receipts during the day and enter them into a spreadsheet on your home computer, etc Another method is to use a credit card for most purchases, and check the credit card statement to see what you actually bought You will still have to enter any cash purchases manually tough Also, don’t forget to set money aside so that you can pay your credit card bill in full when it arrives Finally, if you have a smart phone, there are apps that you can download that will help you with keeping track of your spending

Once you have a clear and detailed view of all your expenses, it will be easier for you to see which purchases you can do without $5 on take-out coffee every day, five days a week? If this is true for 50 weeks of the year, it means that you are spending $1,250 a year on take-out coffee

Pay off expensive credit

Expensive credit can be a money pit Sit down and take a look at all your debts Rather than putting money into a savings account, maybe your focus right now should be to get rid of expensive debt That way, you free up more money in the long run Also, by cleaning up your debt situation, you get a better looking credit report and higher credit score for the day when its time to apply for a house mortgage

If you have a lot of small debts with high fees and interest rates (credit card debt, items paid with installments, etc) you goal should be to pay them off as quickly as possible Don’t just make the minimum payments; create a plan for how you can get rid of these debts as quickly as possible

In some situations, it is actually a good idea to take out a larger loan with a bank and use it to pay off really expensive credits right away Of course, this is only an option if your credit report and credit score is high enough for a bank to be willing to give you a loan with better T&C’s than what you have for your current debts

Get a side income

• Maybe you can pick up extra shifts at work?
• Start looking for an extra job
• If you don’t want to spend more time away from home, look for an extra job that you can do from your home, e
• g
• working online
• Get actively involved in your career and determine what’s required to be promoted to a new, more well-paying, position
• You might not have been super interested in your career before, but having a goal to work towards – i
• e
• your very own house or condo – can provide you with new motivation
• Actively start looking around for other jobs that pay better than you current one, and find out what it would take to be hired
• You might not be able to trot off to a 4-year college to qualify for an new career, but maybe there are other ways for your to become more sought after in the job market?
• Make sure that you know how much money you will need for the down payment
• The internet has made it very easy to check what requirement different banks have
• You can either go to the webpage of each bank or go to a website that have already compiled the info for you
• It can also be a good idea to visit a website that list banks that offer loans that can be used for down payments
• One example of such as website is www
• handpenning
• nu
• Don’t be afraid to tell others about your dream of becoming a home owner
• Working towards a goal is something to be proud of
• Let your network know that you are looking for opportunities to earn extra cash and what you are willing to do
• Of course, this will depend on your skill set
• You may for instance offer help with cleaning, laundry, gardening, installing computers, doing small repairs around the house, pick up kids from school, cooking, baking, grocery shopping, house sitting, pet care, etc
• You’d be surprised to know how many people that would be more than willing to pay for a pair of extra hands around the house, but are hesitant to put out a formal add because the dislike the idea of having a complete stranger in their home

Don’t save – buy a house!

Sometimes the best way to get your dream house is to buy your non-dream house Even though regular savings can help you afford a down-payment on a house, there are many houses where the down-payment is so big that saving up would take decades Instead of trying to save up for your dream house, you might want to consider getting into the property ladder far below you dream house and then gradually move your way up Instead of going for your dream house, buy a house that you can afford – provided of course that you have reason to believe that it will increase in value

This method works best for people who are willing to get their hands dirty and do some renovations in their own free time (but also pay for professionals when necessary) Always keep a keen eye on the budget, because you want to put much less money into the renovation than the predicted increase in property value

If you’re interested in this approach, we recommend that you read our articles about Ugly Duckling Property and Fixer Upper