22 Aug How Two-income Couples Can Quickly Save Up for a Home Deposit
Saving up money for a new home? If both of you and your partner are receiving a paycheck, you can supercharge your ability to save up for a home deposit if you try this valuable tip.
Live off one income and save the other. If you’re only living on one income, you’re naturally forced to keep your expenses within the budget of that one income. Most people don’t have a savings problem. They have a spending problem.
For instance, one of you earns $40,000/year, and the other earns $60,000/year. You might be used to living on both of your incomes, so to turbo-charge your finances, consider weaning yourself off of that.
Why you should consider doing it
This valuable tip provides a set specific goal. It takes an extra effort to just mentally note that you’re going to spend $5000 or $15000. You’ll have to manually track over time to see if you’re actually meeting your goal. But if you decide to save one of the salaries, you’ll be spared from this hassle!
How to implement it
There are many ways on how to go about it but I will share some ideas with you to give you a head start. You can combine your finances and your pay checks both go into one account. This gives you both transparency over what’s happening with the two incomes and just makes it all easier to organise on a practical level. You can then set your budget accordingly and it will be easier for you to allot a higher percentage for your home deposit.
Another option is to live on the lower of the two wages and for the other pay check, you can put that directly to your home deposit budget. Before you know it, you’ll have enough amount to purchase your dream home.
Live on one person’s income and save the entirety of the other person’s is one efficient way of quickly saving up for your home deposit. After successfully reaching this goal, you had developed this habit and you can continue adapting this strategy when paying your mortgage.
I’ve heard successful stories from my clients who have saved up for the deposit and even paid off their entire mortgage in as little as 3 to 5 years by living on one spouse’s income and using the entirety of the other income to pay off the mortgage! Does anyone else have done this? ☺ How did it turn out for you? Would you personally recommend it?
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