4. Cut back on gas expenses Gas is a big expense, especially with gas prices rising. Consider carpooling with a co-worker or trading in your car for one that gets better gas mileage. If you trade your car in, you will be saving money and saving the environment.
5. Lower other expenses Start buying cheaper food. Go to a store with lower prices or somewhere where you can use a discount card to get money off. Take advantage of coupons for both food and other expenses (check the Sunday paper!) See if you can switch to a cheaper cell phone plan or insurance policy. Make coffee at home instead of going to a coffee shop every day. The little expenses add up, so cut out the things that you can do without.
6. Sell things you don’t need If you have old clothes, CDs, or college textbooks laying around that you no longer need, sell them! You can sell just about anything on eBay and Amazon will sell books online for you. It would also be well worth the short amount of time it takes to list your stuff on Craigslist. Don’t forget garage sales, which is yet another way to shift things you don’t want or need fairly quickly with the added benefit of not having to pay transaction fees.
7. Get cheaper housing There are a few ways to do this. You can get a roommate to share the cost of rent with you, move to a cheaper apartment or condo, or move back in with your parents. Any of these options will help you save money for your home loan deposit.
8. Find the right place to put your savings There are a few different places you can put your money. Usually banks let you choose between an account with low transaction fees and lower interest and high transaction fees and higher interest. If you want to use internet based technologies for payment, there are accounts with low fees and a high interest rate. Also consider share investment, which generally has higher returns but is more of a risk.
9. Make sure you have good credit Request a copy of your credit report and make sure that there are no errors on it. If there are, take the time to correct them as well as to build good credit (especially if you have had bad credit in the past). This will ensure that you will be qualified for your home loan when the time comes for you to get it.
10. Shop around for mortgages When you have a good amount of money saved and have built your credit up, you are almost ready to get your home loan. Make sure you shop around to make sure you get the best home loan for you — this includes large, small, national, and regional banks.