Purchasing and owning your own home is incredibly expensive. In fact, many people tell themselves that not owning a home is one of the smartest decisions you could make when you’re still young. However, as far as long-term investments go, if you’re able to afford a home at a young age then it could put you in a comfortable financial position that will last for the rest of your life.
If you’re planning on purchasing your own home in the near future or already own one but want to make it cheaper, then here are some thrifty homeowner secrets that will help you achieve the financial freedom you’re looking for.
What’s Financial Freedom to You?
A lot of people have differing opinions on what financial freedom actually is to them. Some people assume that financial freedom means being rich, but it’s so much more than that. Financial freedom does rely on having money, but you don’t need as much as you think. It’s all about having the freedom to maintain your current lifestyle without sacrificing anything. It’s about having the job you want, being able to go out when you want and having the emotional strength and power to be as successful as you want.
However, financial freedom can mean different things to different people. This is just a simple description of what financial freedom means to most people, but it can be altered depending on what your personal goals are. Some people want the freedom to be able to head out every Friday night without worrying about their bank balance, and some people will consider themselves financially free if they’re able to pay for their child’s tuition fees.
Financial freedom has a different meaning for everyone, but it’s important to define what it means to you so you know what you should compromise on and what you should focus on. Without further ado, let’s take a look at some thrifty homeowner secrets that will give you financial freedom regardless of what your opinion of it is.
Budding Homeowner Tips
If you’ve yet to purchase a home then don’t worry–you’re already in a good position. Some people spend far too much on their home and they end up regretting some of the decisions they make. Whether it’s the location of their home, the sheer size of it or even missing local amenities, picking a home to purchase is the first thrifty secret that we’re going to share.
When picking a mortgage, it’s important to look around for the best deals. Take a look at companies such as Altrua Mortgage to find a low-rate discounted mortgage. Approaching banks might be the common solution, but you can get far better deals if you shop around and look for better deals. Keep in mind that some realtors will charge you extra for their services, so you need to keep these hidden charges in mind for when you purchase a home.
Of course, it always pays to plan ahead for a down payment, which is arguably the most expensive thing to save for. Saving for a down payment really just means budgeting correctly. Use budgeting software to help you decide how much money you have each day to spend and make sure you’re always putting some of your salary towards a down payment. Sounds obvious, but the use of budgeting software can greatly increase your chances.
We could list a whole host of lifestyle changes that you need to make in order to successfully save for your home. However, instead of just listing every single tip that we can think of, we’re going to give you the most important ones:
- Your motivation for owning a home – What is your motivation for purchasing your first home? Is it because you want to start a family with your partner? Is it because you’re expecting a child? Or do you just want to have some privacy in your home? There are plenty of different reasons why you should consider moving away and getting your own home, but everyone’s motivation to do so will be different. Ask yourself if you’re ready to move and settle on a source of inspiration that you can look back on.
- Getting rid of debt - If you want to own a home then it’s important that you focus on dragging yourself out of debt. It can be difficult, but with some debt consolidation tips and support from family and friends, it’s possible to clear your debt before you get involved with a mortgage. Remember that clearing your debt means you’ll have a better credit rating, and this, in turn, means that you’ll have a better chance of getting a good mortgage deal.
- Mental preparation to move away - You also need to be mentally prepared to move away from where you currently live. This occasionally means saying goodbye to your friends (at least, for longer periods) and it could also mean losing the support of close family members who live with you. Moving away comes with many challenges, so mentally prepare yourself if you’re certain on moving. This often means that you’ll be responsible for more things around the home. Be it mowing the lawn, washing the dishes or sweeping the carpets, you’re going to be in charge of more things and this often means that you’ll be spending more money than usual.
- Accept that you need to live with less - If you want to move home on a budget, then you need to accept that you’ll be living with less. You won’t be sharing the bills with people and you’re not going to be splitting the costs of your internet connection with a roommate. Accept that you’ll have more responsibilities and kerb the costs of living by accepting that you have to get by with less.
- Healthier habits that won’t cost you - Everyone has bad habits that will cost them a lot of money. In order to make healthy lifestyle changes that will save you money, you need to get rid of these unhealthy habits. Be it smoking, eating junk food or even gambling, deal with your bad habits before you decide that you want to own a home or else they will hold you back and make it far more difficult.
As you can see, lifestyle changes and accepting responsibility will help you overcome many of the challenges involved with owning a home and obtaining financial freedom. You might think that owning a home is an insurmountable task that isn’t suited for the thrifty among us, but it’s surprisingly affordable as long as you focus on the importance of accepting lifestyle changes that can help you save money.
Embracing Life as a Thrifty Homeowner
Let’s say that you actually do have a home already, but you’ve realised that it’s costing you a lot of money and you simply can’t get that financial freedom that you want in order to help you stabilize. Fortunately, this type of situation is common enough that there’s a wealth of information available on the internet that will tell you how to resolve this problem.
- Decluttering - The first tip you should know is decluttering. Decluttering is simply just cleaning up all of your junk and tossing it away, or at least selling it so that it goes to a better home. Whether it’s old video game devices or comic books, it’s a good idea to clean up the house so we get more space for useful things. Decluttering will teach you a valuable lesson: that you have too many possessions. Whether it’s the fact you’re buying more storage space or simply purchasing too many things for yourself, decluttering will make you realise that you can live with less.
- Healthier lifestyles - A lot of the things we purchase or spend money on can actually make us poorer overall. For instance, the fact that you own a car instead of taking public transport means that you’re subjecting yourself to paying for insurance, maintenance and other car-related costs. If you gave up your car, you’d be giving up some convenience but you’d be gaining a lot of money. Taking public transport and walking is also much healthier for you because you’ll be getting a bit of exercise instead of just sitting down and driving.We also shouldn’t forget that eating healthily is cheaper than eating fast food all the time or going out to eat at a restaurant.
- Thrifty fashion - We often fill our wardrobes with all types of clothes, but have you ever been to a thrift store? If you’re looking for some vintage pieces of fashion or just clothing that is more affordable than even the basics that you’ll find in some high street stores, then look no further than a thrift store. Not only will it help you declutter because you can easily sell your old or unwanted clothes, but it also means you’ll be paying less for basic essentials such as clothing.
As you can see, it doesn’t take much to obtain financial freedom assuming you have the right guidance and direction. Financial freedom means that you need to change the way you approach life, and hopefully, this article has given you plenty of motivation to make a difference in the way you live so you can become a homeowner that is sitting comfortably.