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A Quick Method to Save Thousands for A Down Payment

A Quick Method to Save Thousands for A Down Payment

I want to start by saying that everybody’s strategy is going to be very different – we all have things we cannot live without, for some it may be cable TV, an annual trip, a gym membership or something for your family. Additionally, not everyone has the same goals. You might be saving to purchase your dream car, or even simply provide for your household. With that being said, I believe that saving requires a balance, as I might crave that really nice dinner a lot more if I never go out, or do anything that costs. Treating yourself will have you less likely to cave and revert back to old spending habits.

Recently, I had this epiphany that I am now an adult. Yes, this sounds ridiculous considering I’m into my mid-twenties, but when I received pre-approval to buy a city home on the west coast, I felt it truly hit me like that time my sister actually crushed a water bottle onto my face out of anger (Fifteen years, and this memory is still real). I live in one of the most expensive cities in the world, and I am a millennial that is entirely self-funded. How on earth would I be able to secure this, right?

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I was having coffee with one of my friends, who also has been going through this process lately, and she asked me what my strategy was, and I am sharing it now in the event that it can inspire others to help achieve their goals, while still enjoying other areas of life, as anyone can adopt this method in some way, regardless of income and lifestyle.

If you happen to have a chequing and savings account, have your income deposited into the chequing, and take a good look at this number – how much of it do you REALLY need, and how much would you spend on extra little things? This will differ for everyone during different times in life, and perhaps if you try this, it may not look like you are really saving that much – however, even if you place as little as $100 in your savings each month, this will become $3,600 in three years, which is still helpful towards your objectives and something to be proud of.

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For me, I made a goal that I would take a certain percentage of my income each month, and transfer it into my savings account, which I then do not touch or withdraw from. This creates an “out of sight, out of mind” phenomenon that results in me having to make strategies more wisely with the rest. For example, I stopped buying breakfast on the way to work, I used my debt card more and my credit card much less, all the while thinking out my trivial expenditures more and remembering the value of a dollar. I evaluate my purchases more, yet I don’t feel as though I am limited or lacking in terms of what I am able to do or consume.

As a result, I was able to achieve my goal of being approved for a condo much sooner than expected, with about 25% ready – all the while, still partaking in events or occasional coffee outings. I didn’t feel stressed or burdened by this process at all because the budgeting had already been done for me – I didn’t avoid events and activities all together, I simply became more selective until my goals were met.

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Additionally, it felt good to see how much can be saved, especially since I used to have a habit of eating out for meals, instead of attempting to craft things. If it worked for me, it may work for you!

Featured photo credit: Binyamin Mellish via pexels.com

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Last Updated on January 21, 2020

How to Develop a Millionaire Mindset in 6 Simple Steps

How to Develop a Millionaire Mindset in 6 Simple Steps

We all like to dream about being financially wealthy. For most people though, it remains a dream and nothing more. Why is that?

It’s because most people don’t set their mind to achieving that goal. They might not be happy in their current situation but they’re comfortable – and comfort is one of the biggest enemies of growth.

How do you go about developing that millionaire mindset? By following these simple steps:

1. Focus On What You Want – And Take It!

So many people are too timid to admit they want something and go for it. When there is something that you want to accomplish don’t think “I could never actually do that”, think “I could do that and I WILL do that”.

Millionaires play to win, not to avoid defeat.

This doesn’t mean to have to become a selfish jerk. What it means is becoming more assertive and honest with yourself. You don’t have to grab off other people. There is a big pot of unclaimed gold in the middle of the table — why shouldn’t you be the one to claim it? You deserve it!

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2. Become Goal-Orientated

It’s almost impossible to achieve anything if you don’t set firm goals. Only lottery winners become millionaires overnight. By setting yourself attainable goals, you will get there eventually. Don’t try to get rich quickly — get rich slowly.

Let’s take the idea of making your first million dollars and expand on what kind of goals you might set to get there. Let’s also say you’re starting at a break-even position – you’re making enough to get by with a few luxuries, but nothing more.

Your goal for the first year can be having $10,000 in the bank within a year. It won’t be easy but it is doable. Next, you need to figure out the steps you need to take to achieve that goal.

Always look at ways to make growth before cutbacks. With that in mind, you might want to see if you can negotiate a pay rise with your boss, or if there’s another job out there that will pay better. You might be comfortable in your old job but remember, comfort stunts growth.

You may also have other skills outside of your workplace that you can monetize to boost your bank balance. Maybe you can design websites for people, at a fee of course, or make alterations to clothes.

If this is still not enough to make the money you need to save $10,000 in a year, then it’s time to look at cutbacks. Do you have a bunch of old junk that someone else might love? Sell it! Do you really need to spend $10 on your lunch everyday when you could make your own for a fraction of the cost?

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If you are to become a millionaire, you need to start accumulating money.

Here’re some tips to help you: How to Become Goal Oriented and Achieve More in Life

3. Don’t Spend Your Money – Invest It

The reason you need to accumulate money is for step three. Millionaires tend to be frugal people, and that’s because they know the true value of money is in investing. Being your own boss goes hand-in-hand with becoming a millionaire. You’ll want to quit your regular job at some point.

Stop working for your money and make your money work for you.

Rather than buying yourself a new iPad, that $500 could be used to invest in the stock market. Find the right shares (more on that later), and that money could easily double within a year.

There’s not just the stock market — there’s also property, and your own education.

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4. Never Stop Learning

The best thing you can invest in is yourself.

Once most people leave the education system, they think their learning days are over. Well theirs might be, but yours shouldn’t be. Successful people continually learn and adapt.

Billionaire Warren Buffet estimates that he read at least 100 books on investing before he turned twenty. Most people never read another book after they’ve left school. Who would you rather be?

Learn everything you can about how economics works, how the stocks markets work, how they trend.

Learn new skills. If you have an interest in it, learn everything you can about it. You’d be surprised at how often, seemingly useless skills, can become extremely useful in the right situation.

Start developing the habit of learning continuously: How to Create a Habit of Continuous Learning for a Better You

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5. Think Big

While I advise to start off with small goals, you absolutely should have a big goal in mind. If you have a business idea, then that is your ultimate goal – to start that business and make a success of it. If you want to invest your way to millions of dollars and do little work other than research, then that is your big goal.

There is no shame in not achieving a big goal. If you run a business and aim to make $1 million profit in a year and “only” make $200,000, then you’re still significantly ahead of most people.

Aim for the stars, if you fail you’ll still be over the moon.

6. Enjoy the Attention

To be successful, you have to be willing to promote yourself and enjoy the attention to a certain extent. Now the attention doesn’t need to be on yourself, it could be on your brand, but attention definitely attracts money.

Never be embarrassed to get your name out there. That means finding a spotlight and being brave enough to step right up underneath it.

If you run a business, try contacting the local papers. You’d be surprised at how amenable they often are to running a story about you and your business, and it’s all free publicity.

Above all, remember: You control your own destiny. Push hard enough for anything and you’ll get it.

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Featured photo credit: Austin Distel via unsplash.com

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