While nobody said investing in houses is easy, it is definitely worth the effort.
After all, you can’t really put a price tag on financial freedom.
But what if you can’t seem to pull together the money you need to get started investing in property?
Take a strategic approach to your savings plan.
1. Have you set a target?
Have you heard of the saying, “if you aim at nothing, you’ll hit it every time”?
This is especially true of those things which take time to accomplish.
Instead of deciding you’ll save “whatever is left over”, set a target number and work your budget around that number.
Choose the budget strategy that works best for you and stick to it.
2. Is your savings plan realistic?
If saving money were always easy, then more people would do more of it.
The truth is that life can get complicated – there’s always going to be something that comes along screaming for our attention…and our cash.
The trick is to realise ahead of time that things will come up (e.g. car repairs, vet bills, etc.) so that you can be mentally and fiscally prepared to deal with them…without losing your stride.
3. Is your budget realistic?
Your budget needs to be realistic as well, especially if you plan to start investing in houses.
What do I mean by realistic?
Let’s say you’ve only managed to scrape an extra $25 per week from your budget to go towards your savings fund.
It’s asking too much of yourself and too much of your budget to assume that you’ll be able to put away $100 per week straight away.
Start small, slowly building up your savings while trimming as much of your budget as you can without leaving yourself feeling deprived.
It’s important to be realistic about your finances. After all, once you’ve started investing in houses you’ll really feel the impact if you don’t get a good grip on your spending and saving strategies now.
4. Are you resisting lifestyle creep?
It’s not uncommon for people to fall victim to what’s described as “lifestyle creep”.
A raise at work, a new job with a higher salary or even a paid off car loan…if you’ve ever had an increase in money come into – and leave – your life with little to nothing to show for it, you’ve been a victim of “lifestyle inflation”.
Don’t let this happen to you.
If you’re expecting more money to come into your life, assign it to your budget before you get it, preferably to an interest bearing savings account to be used when you begin investing in houses.
Want to know more about investing in houses? Join us at our next FREE Property Investor Night! It’s FREE and you’ll have the opportunity to meet with our coaches and ask them all the questions you want!