At the Trinidad and Tobago Fire Service Credit Union, we offer loans for purchasing land, buying land and buildings, construction of houses, or down payments required for mortgages offered by recognized financial institutions. Most of our members dream of owning a home and spend much of their adult lives working toward realizing that dream. Buying a new home is the largest financial transaction most people will make in their lifetime. There are many significant considerations for buying and owning a new home, including your down payment, loan origination fees, closing costs, moving expenses, and even purchasing new appliances or repairs in some cases. Finding ways to save for your new home takes discipline and planning. But, not to worry, we’re sharing three simple ways to save for your new home to get you started
Talk with one of our mortgage specialists, who can help you determine how much you need to set aside for the purchase of your new home. If you haven’t already, it’s time to open a savings account that you specifically designate for your new home costs. Starting a savings account will allow you to readily and easily contribute money toward your new home purchase. Consider contributing at least 10% of your salary each pay period to your savings account. If you can do more, then you will reach your savings goal sooner.
Most employers offer direct deposit of your wages to a bank account or accounts. If you are able to set up direct deposit with your employer, then you can split your paycheck into one deposit for your checking account and another set amount to be deposited into your savings account. Setting up direct deposit in this way means that you start saving automatically, without even having to think about it.
If your employer doesn’t offer direct deposit, then you can set up an automatic monthly transfer of funds from one account to another. For example, if you know that you typically get paid on the 15th and the 30th of the month, then you can set up your automatic transfer to take place a day or two later. This automatic transfer can be established using online banking or coming into the credit union and filling out the appropriate forms.
The important thing is to start saving right away. Establishing a savings account is the first step toward saving for your new home. Once that’s done, then making your savings deposits automatic will help to ensure that you are putting money away in earnest to reach your savings goals.
Make a Budget
Have you heard the Lewis Carroll quote, “If you don’t know where you are going, any road will get you there.” When planning for the purchase of your new home, you’ll need a budget to be your guide. To get started on making a budget, compile all of your monthly bills and receipts to get a handle on what you’re spending each month. If you haven’t kept receipts and records of your spending, then you’ll want to start this month.
Take a close look at your statements, bills and receipts, and then categorize them into essentials and non-essentials. Essentials will include your rent, car payment, utilities and food. Non-essentials might include things like fast food, coffee breaks, spa days, movies and more. With your monthly expenses categorized, you can start to put together a realistic budget and work on cutting excess expenses where you can. Saving for your new home will mean making some sacrifices in non-essential spending. You will need to prioritize your non-essential spending items, and then determine what you can live without. Allocate the money that you save from those cuts to your savings.
There are numerous software programs that can help you with budgeting, but be sure to select a reputable tool that takes several factors into consideration like our very own Budget Calculator. Using technology can help you keep a good record of your spending and stay on track with your budget.
When you’ve made all of the cuts that you can make from your budget, then it’s time to make sure that you’re getting the best deals for the money that you are spending. Most of us, however, don’t have time for a ton of coupon cutting, but that’s where technology can help again.
Making purchases online through discount e-tailers can lead to significant cost savings for items like clothing, technology, media and gifts. In addition, some websites and stores offer items secondhand, meaning that you can purchase gently used items at significant discounts.
Some local merchants offer special discounts or group deals, so it’s always worth it to do a little online research before heading out to make those purchases. The money you save by discount shopping should be added to your overall savings.
A new home is within your reach and you can start saving for your dream home today. By using these three simple tips to get started on your savings plan, you will find that reaching your savings goals are simpler that you think.
If you have questions about how much you need to save for the home of your dreams or what expenses you might need to plan for, please feel free to contact us for more information.