money

Plan ahead

Whether you are dreaming of a ranch in the country or a project home in Sydney, one of the best things you can do to prepare for home ownership is to reduce your debt. Not only does it make room for the mortgage payment in your budget, you’ll get a better interest rate that can save thousands over time.

What Can You Afford

Don’t base this off of the highest loan amount that you can get approved for because going for the maximum can leave you in over your head later on. Instead, look at your budget and decide what you are comfortable with for a monthly payment. You can start with a home loan eligibility calculator to help you choose a price range.

Get Expert Help

Getting a professional home inspection will help you to find problem areas before you buy and save you money on repairs. Even if you are a handy person, it’s better not to assess things on your own. If the inspector finds something you can ask the seller to deduct that amount from the price or to fix it before you sign the contract, plus you’ll know exactly what you’re getting into.

The professionals helping you to find your dream home should also be willing to help you, from your realtor or your mortgage broker to your conveyancer. Ask questions and be suspicious of anyone who doesn’t seem willing to explain the process. Remember, they are working for you.

Know What Your Agreeing To

There can be costs that are separate from the mortgage, such as Homeowners Association fees. These can range from $50 to hundreds per month on top of your mortgage and taxes. Read HOA agreements thoroughly and be sure you understand what the additional cost will be. Take into consideration concessions such as stamp duty or removal costs if you plan to renovate part of the property.

There are also helpful options, such as a First Home Owners Grant, that you may qualify for to help with the cost of buying your first house. Look at the whole picture, not just your monthly house payment.

Having Money Saves Money

It’s not a requirement, but if you save up a deposit of at least 20% not only will it improve the interest rate you will be offered but you can avoid having to pay for Private Mortgage Insurance. A PMI agreement protects the seller in case you default and it can add up to thousands over the life of your mortgage.

This is a guest post…

The frugal lifestyle is about saving money and living on less. Some do it because they have to and others do it by choice. No matter what group you fall into, we’re all in the same boat. We all have the same goals.

The best way to promote frugal living is through the sharing of ideas. And that’s what we’re going to do here. We’re going to help you find out more about how to live a frugal lifestyle.

1. We Enjoy It…No Really

Most people who live a truly frugal lifestyle do it because they want to. It isn’t influenced by how much money you have in the bank.

The truth is a lot of frugal people live on less than someone who’s truly destitute. There are a lot of ways you can live on just a few dollars a day quite comfortably. All it takes is work.

2. Drying Your Clothes

You don’t need a dryer.

It’s hard to believe, but you can quite easily go back to drying clothes on a line. In the U.S., this is no longer the done thing. In many countries, such as the UK, it’s what practically everyone does.

You can easily save $100 annually on energy costs by letting your clothes air dry.

3. Detergent

For some extreme penny pinching, try making your own detergent. It’s easier than you think. All it takes is soap, washing soda, and borax. You can save hundreds of dollars over the course of a few years like this.

It also saves on all that running down to the store whenever you run out!

4. Public Transport

Public transport is so cheap it’s shocking why people don’t use it. Not every city has dirty buses with lots of weird people onboard. Leave the car at home and consider taking the bus.

Gas is expensive these days. You’ll be surprised at how much you save.

And if you really want to save money try walking or jogging to work. You’ll save on all travel costs and get in shape at the same time.

5. Make Gifts

Do you remember all those fake holidays dreamed up by retailers?

Valentine’s Day, Halloween, and Mother’s Day are just three of them. Instead of becoming a social outcast by not buying anything, make your own gifts.

Use your imagination and materials you find around the house. Gifts that were made by hand mean so much more than something you picked up for $20. It demonstrates you put some real thought into your gift.

6. Vacationing Closer to Home

For a vacation we always think of exotic countries and the wonders of other states. It’s amazing how little we know of the regions closest to us.

Instead of spending so much on travel and hotels, try taking the odd vacation closer to home. Within a few hundred miles of home you’ll find so much to do. It can just be as fun as flying to Europe or the other end of the country.

7. Coupon Masters

We’ve all seen news articles and TV shows about coupon nuts. These strange beasts collect coupons and save thousands of dollars every year by using their discount finding skills. You can do the same thing!

It doesn’t take any specialist knowledge. All you have to do is practice. Know where to find the best deals and how to maximize the power of every coupon.

Start by using a few coupons, and then try to transition as many of your purchases as possible over to coupons.

8. Repair Your Clothes

It’s disgusting just how many perfectly good garments we throw out every year. If a shirt has a small hole in it, don’t throw it out. Repair it instead.

You don’t need a sewing machine to do it. A good old-fashioned needle and thread is all you need. If you do want to perform complete rejuvenations, take a sewing class and invest in a machine.

Not only will you save money by doing all this, you’ll also help the environment. We as a nation need to use less and make do with what we have.

And here’s the true secret to frugal living: It’s laziness that holds us back. Anyone can do it if they really want to.