April 23, 2018

Steps To Help You Save Towards Purchasing A Home

Possibly you don’t own a home but you would now like to start saving towards a down payment to purchase a home.  The first thing you need to do is eliminate your debts to start your savings.

Here are some suggestions to take control of your debts:

  1. Assess Your Situation:  Take an honest look at what you owe, the interest rates and the terms of repayment and document everything
  2. Set Goals:  Take some time to work out your short, medium and long-term financial goals i.e. in 1 year you may want to pay off all your debts, in 2 years you may want to buy a car, in 3 years you may want to purchase a house.  Without solid goals, you won’t be motivated to pay off your debts
  3. Create a Household Budget:  Once you have determined how much you owe, you need to identify all your monthly expenditures.  Create a household budget to determine how much you have to spend on basic living costs and subtract that from your monthly income.  Then see what’s left over to pay off your debts
  4. Curb Your Spending:  Determine where you have been wasting money and what changes you could make to amp up your debt repayment.  Maybe you don’t have to buy your lunch or you could take advantage of free coffee at work plus you could put all your change in a jar, then use it to pay down your debts
  5. Stow Your Credit Cards:  Since it was your credit cards that got you into trouble in the first place, you need to stop using them.  You must cut them up except maybe one for emergencies.  Remove the temptation
  6. Learn How To Say No:  Creating a budget is the easy part, sticking to it is something else.  Set yourself a challenge for example, go 30, then 60 then 90 days without shopping.  You have to learn how to say no and stick to your plan because it is so easy to fall back into your old spending habits
  7. Snowball Your Debt Payments:  Tackle your highest interest rate debt first because this is the one that is costing you the most.  You could also pay off the smallest debt first to give you some success to stay motivated.  Once the small debts are gone, you can use that money to snowball the payments on the other cards
  8. Find Extra Sources Of Income:  In order to repay debt as fast as possible, consider other sources of income.  Take a look at your assets to see if you can part with them.  Or, you could look at getting a second job

I offer a totally confidential complimentary 45 minute Financial Consultation to provide you with alternatives and options available towards establishing your financial goals.

Colleen Saunders is a 20 year veteran in the mortgage industry, serving Mississauga, Burlington, Oakville and Toronto and offering all mortgage related services such as 2nd mortgages, private mortgages and more.

To contact Colleen, please fill out the form on  www.mortgagesbycolleen.ca  or call 416-459-2406