Your home may well be the biggest purchase you’ll ever make. Most Canadians take on a mortgage so they can stretch payment out over many years. You have to save, at bare minimum of 5 % of the purchase price. And don’t forget to add closing costs (Land Transfer Taxe, Lawyer fees, Movers etc.).
So on a $500,000 dollars home, you will need 25,000 dollars.
Here are a bunch of ways to grow your nest egg:
- Work hard; rack up accomplishments; ask for a raise.
- Earn a second income with a side gig or freelance work.
- Save cash gifts from relatives.
- Start a budget. Use budgeting apps to stay on-track with your financial goals.
- Save on gas and parking by walking, cycling or taking public transit.
- Put your gym membership on hold and exercise outdoors during warmer months.
- Cut your cable or satellite TV.
- Negotiate discounts with your insurance providers.
- Ask your mobile provider for a better deal. Ditch that landline.
- Cancel your cell phone and use VoIP (Voice over Internet Protocol) for free long distance.
- Pack your lunch.
- Drink office coffee, not coffee shop coffee.
- Eat at home more often.
- Buy groceries using a shopping list. Never shop when you’re hungry.
- Buy (and save big) in bulk (divide bulk purchases with friends).
- Save money in your RRSP to dissuade impulse shopping. (You’ll be eligible to withdraw up to $25,000 from your RRSP to buy or build your first home, under the federal government’s Home Buyer’s Plan).
- Get a roommate.
- Downsize to a smaller rental.
- Move in with your parents.
- Rent in a cheaper part of town (if it won’t boost transportation costs).
- Nix that storage unit rental. Sell the contents.
- Join a trading group so you can swap, not shop, for a variety of items.
- Unclutter your home and sell items for fast cash.
- Pay yourself first: Set up biweekly automatic transfers from your checking account to your savings account.
- Eliminate your credit card debt. Stop paying interest on a balance!
- Catch up with friends over a walk, not cocktails.
- Don’t buy books or e-books. The library lends both.
- Say no to luxury vacations and yes to staycations (at least for now).
Saving takes discipline, sacrifice and hard work: the payoff is priceless!
If you would like to talk more in deapth about it, please do not hesitate to contact me:
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