Saving Should Be Second Nature

Billionaire Warren Buffet once said: “Do not save what is left after spending; instead, spend what is left after saving.” Whatever your saving goals might be, it is important that they are the first consideration in your paycheck right after necessities. Only then should you freely spend your money.

One good savings plan you could enact is the 50-30-20 rule, wherein you divide your after-tax income into those fragments. 50% should be the limit of your necessities, 30% should be the limit of your leisure purchases, and 20% should be set aside for your saving goals. Depending on your circumstances, this may need adjustment, but this is a good ratio to start with. Most important here is that if you can save more, do so. It may mean the money you have to spend on leisure isn’t as much, but it means you’ll be making bigger strides to that down payment!

Avoid Spending Money Unnecessarily

Happiness and joy are a part of every human’s needs, but a question you should ask yourself is if you are spending unnecessarily. Do you really need that daily dose of boba tea? Do you really need the services of more than one streaming service? If you have a streaming service, do you even need cable? How much of your data do you use?

These are just some of the things you can cut back on. With a closer look at your spending habits, you could certainly spot a few more. For all you know, you could live happily without many of these things.

Use Crucial Cash-Saving and Cash-Growing Hacks

One of the best ways to save for any fund is to put the money in a different account. It must be out of the reach of temptation as much as possible if you are to successfully reach your goal. You could even open an account that gains interest over time, ensuring that the money saved is also money that is growing.

Outside of that, here are some money-saving hacks you can employ to great effect:

1. Put every $5 bill you get as change into your down payment fund.
2. Save the coins you get, as they can total up to hundreds of dollars per year.
3. Deposit windfalls immediately into your down payment fund. This includes holiday bonuses, birthday checks, inheritances, debit card rebates, and so on.
4. Try to find and utilize all the coupons you can get for your daily expenses.
5. Use budgeting apps. There are plenty of options out there depending on your preferences. The right app can make managing your earnings and regulating your spending easier than ever!

Buying a Home on O’ahu with HI Velocity Mortgage

One thing mortgage brokers hear from people who have successfully saved is that they didn’t even realize that they had reached their goals at all. They had reached it far sooner than they thought they would. Often, it was because they had just kept saving for their dream home on O’ahu without a second thought.

If you want to consult a mortgage broker about your dream home on O’ahu, give us at Hi Velocity Mortgage a call at (808) 727-1055. We can help you achieve your dreams and make them reality much sooner than you might think.