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11
Jun

Smart Money Saving Tips That Could Help Towards Your Mortgage Deposit

A home is likely to be the most expensive thing you ever pay for. And as you can imagine that rather suggests that you're going to need to start saving early if you're going to afford the kind of property you want. Unfortunately though many people struggle with this and have a hard time reigning in their spending even though they know it's for the best.

The secret though is all in how you approach your saving. If you have the right strategy going forward then you will find that it involves a much less jarring change to your lifestyle and that you are much more likely to succeed. To that end, let's look at a few of the techniques you can use to help make saving easier.

Cutting Back on Daily Expenses

Most of us don't realise just how much we spend on smaller day-to-day transactions such as our food shopping, our transport and the odd cup of coffee. It's all too easy for this to quickly add up to a large amount of cash and often we won't even know where the money as gone.

Thus a good starting point is to try and cut down on these smaller amounts by cutting back on meals out, unnecessary trips or more expensive meals. Keeping track of all this can be difficult, so a good strategy is to withdraw $200 from your bank account at the start of the month and then to make the pact with yourself that you will only spend money (other than direct debits) from that $200 lump. This will automatically make you a lot thriftier and you'll find you quickly save a lot of cash in the process.

Removing Unnecessary Debits

So that's the smaller expenses gone, now how about those unnecessary debits? If you're a gym member for instance then this might count as an unnecessary debit and within just a few months you'll have saved yourself a lot of cash by removing that expense. That doesn't give you a license to get out of shape – just try training from home instead of at that expensive health spa! Other unnecessary debits might include a magazine subscription and Netflix. Those aren't expensive in themselves, but several such expenses soon add up!

Cutting Back on 'Treats'

It's all too easy to give in to the things you want and to end up costing yourself a lot of money. Perhaps you are guilty of occasionally treating yourself to a new DVD or game? Or maybe you recently bought a new computer? 

If you find yourself struggling to be strict with yourself, then a strategy to adopt is to keep a list of all the things you want and to write on that each time you feel yourself wanting something. Next time you want something, write down what that thing is and forget it. This way you can sate some of that impulse to buy and you'll be able to get it off your mind until you come back to it later (when writing a birthday list perhaps, or after a windfall). It may sound like a small thing, but you'd be surprised how much easier it makes it to be strict!

Saving Change

Lastly, consider saving money in a jar when you find lose change. Again it won't seem like much at the time, but over the course of a year if you're putting bigger coins in it can actually add up! Alternatively you could make a swear jar, or another system to collect 'little and often'. Eventually it will all add up to help getting that mortgage!

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