When your dream is really big – like buying your first home – that’s a hard one because there are a couple of key elements:
- you have to make sure you’re committed to the end result otherwise your motivation will die out
- you need to make sure that you don’t deny yourself of everything while you’re saving otherwise you will become resentful
- you need to have a plan with milestones and celebrations along the way
- it’s a good idea to have a few contingency plans “just in case”.
So let’s break those down a little…
Commitment – explore why you want to buy a home – really get into the guts of why. Because your parents think it’s a good idea? Because you are sick of renting and having to move at the whim of the landlord whose mortgage you’ve been paying off? Or because you want your own home to start building your adult life within? Make sure the goal is yours and, it’s always good to be moving towards something rather than away from something. The carrot is better than the stick!
Denial – I don’t know about you, but when someone tells me I can’t have something I want it even more. Multiply that by the couple of years that you’ll be saving for your deposit and it’s bound to lead to “blow outs”. I find that by simply adding some play money or guilt free spending into my spending plan, I know that I have a choice and I can treat myself occasionally rather than deny myself always. It’s all about balance!
Milestones – having one massive goal is a big ask. Having lots of little goals leading up to the massive goal is a lot more achievable and a lot less daunting. Break it down, celebrate the wins along the way and keep moving!
Contingency – what if you’re not going to achieve your big goal? Can you create a plan b or even a plan c that will become a stepping stone to the big goal? Rather than buying a fab little apartment right in the middle of the city or your dream location could you buy a not so fab place a little further out? Could you buy an investment property at a cheaper price and have a tenant pay it off? Can you team up with someone and buy with them (making sure contracts are in place)?
Set yourself up for success. Buying your first home might be the biggest financial goal you will ever achieve, so give it the nurturing and attention that it deserves and needs.
#buythathouse
