Here are six strategies that I used to buy my first property investment when I was 23. Knowing how to save money is crucial to being able to build a real estate portfolio, this video will give you the insights into how I fast tracked my ability to save up for my first property.
Knowing how much to save for your first investment property will help you stay motivated to save up and achieve that savings goal. So the first step is to work out how much money you want to save, based on how much your desired investment property will cost.
Once you have that identified, you can get on and start running as many of the following saving strategies to help you save up your deposit money FAST!
Set up a New Savings Bank Account. Move 30% to 50% of your salary to this on the day you get paid from your job. Automate this so it just happens so you can set and forget about it.
Review your monthly expenses to reduce the amount you’re paying each month, things that you don’t NEED are the best places to start. Cut them out, so you’re living each month on less money.
Where possible remove monthly subscriptions such as Spotify, Amazon Prime, Netflix and review those subscriptions you have to have, such as your mobile and internet and see if you can get a better deal on those.
I lived with my parents after graduating from university, until I was 23. This allowed me to save a LOT of money for my first house! Do this if you can and offer to do chores or pay a small amount towards the bills. This allowed me to save about 70% of my salary every month. This is a fast way to save up that deposit while getting your shirts ironed and clothes washed again… Double bonus 😉
If moving back with parents is a no-no, move into shared accommodation. This is exactly what I did at 24 with 2 mates and my household bills were instantly split 3 ways allowing me to save a lot of money. You can find rooms to share on sites like spareroom.co.uk.
Sell your car. This is probably the most valuable asset you own but it’s depreciating each month you own it. Sell it and move that money to your savings account to speed up the time you need to save up your deposit money for your first rental property. I have had to do this to enable me to purchase property in the past. If you cannot live without a car, buy a cheaper, older smaller one that will simply get you from A to B with no frills! Its all about delaying gratification until you have saved up enough money to buy your first investment property.
We all have STUFF around the house we don’t use much or have piled in the cupboard/garage collecting dust. Go find this stuff and sell it online. Use things like Facebook Marketplace, eBay and Gumtree to sell those items fast with little hassle. Try and use contactless payments with PayPal or a direct bank transfer where possible right now. Maintain a safe distance or leave items outside the front door for collection.
One of the fastest methods to save for your first rental property, is to get a loan from relatives. You don’t know until you ask and you can also offer to pay interest on it to tempt them over the line. 10% is a good amount to offer relatives and I have used this method a lot to help make things happen in a short period of time. Key thing is to pay them back so they are okay to do it next time.
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*The content in this video is accurate as of the posting date