Read on to discover four easy ways to save up for the down payment on your next investment property.
1. Use The 50/30/20 Rule
Spend 50 percent of your income on mandatory expenses such as rent, student loans, etc.
Use 30 percent of your income for discretionary spending. This includes things like your Netflix subscription, gym membership, and any other entertainment you enjoy. A budgeting app can alert you when you get close to your 30-percent limit, so you know when to dial back your shopping habit.
Finally, put the last 20 percent of your income into a savings account and don’t touch it.
2. Develop A Timeline To Acquire The Property You Want
If you’ve decided you want to be the owner of an investment property worth $100,000 in two years’ time, figure out how much you’ll need to put aside each month to reach the $20,000 down payment amount and then get busy.
3. Automate Your Budget
Set up fixed/mandatory bills to come out of your account on the same day. This way, you’ll be able to see exactly how much they are. Next, set up an automatic transfer of 20 percent of your income into an account designated especially for the down payment on an investment property. Anything left in your regular account is what you can spend on anything you want.
4. Get Rid Of Things That Don’t Add Value To Your Life
Take a look at your expenses and determine the things that don’t add much value to your life or the things you can do without. This might include magazine subscriptions or the highest cable TV package, for example. Cutting back or doing away with these “extra” expenses can help you put more money aside for that investment property you dream of.
Emma Co Personal Real Estate Corp | Macdonald Realty
emmaco.realty@gmail.com | 6046183888
Building VALUE With Every Move
MacDonald Realty
#203 - 5188 Westminster Hwy
Richmond, BC V7C 5S7
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