How to save money fast for a house
Saving up for a down payment on a new home can seem like an impossible target, but there are a few smart tips you can use to make some big savings in next to no time. Let’s take a closer look at how to save money fast for a house.
Cut back on rent
Cutting back on rent is one of the quickest ways to start saving a sizable sum of money each month. If you currently live alone, one of the easiest ways to do this is to choose to live with a roommate. This immediately halves your rent, and if you choose to live with two additional roommates, you’ll pay roughly a third of what you’re currently paying.
So, if you’re currently paying €1300 a month for a three-bedroom apartment and you get an additional roommate, you’d save €650 a month. If you decided to live with two people, you’d save around €870 a month—that’s nearly €10,500 a year!
If, however, you already live in a shared apartment, consider swapping to a smaller room. Rent rates are usually calculated in accordance with the size of the room being rented, so you could make some significant savings each month. What’s more, it may also encourage you to downsize, which could mean making a bit of extra cash by selling your unused items.
Cut back on your utility bills
Another great tip to save money fast is to cut back on your utility bills. Your electricity and gas bills contribute to a significant chunk of your monthly fixed costs, so if you can reduce them, you can find yourself pocketing a fair bit of extra cash. Here’s how to do it:
- Change your energy provider. By making sure you’re on the cheapest tariffs on the market, you could save yourself hundreds of euros each month.
- Swap your light bulbs for LED light bulbs. Not only is an LED bulb 75–85% more energy efficient than a standard lightbulb, but it also lasts 15–25 times longer.
- Invest in a smart thermostat. This will adjust your central heating intelligently, potentially saving you a great deal of money.
- Seal up any air leaks. Air gaps around your windows and doors can increase your electricity bill as your heaters will have to run longer to keep the room warm. Instead, seal these gaps with pressure-sensitive weather strips to keep any warm air from escaping.
Take up a side hustle
If you want to seriously boost your monthly savings, it’s worth considering taking up a side hustle. This could mean anything from working a few evening shifts at a bar or restaurant after your office job, securing a few freelance gigs, becoming a virtual assistant, or perhaps even pet sitting.
If you can afford to do so, it can be particularly motivating to put all the money generated from your side hustles straight into your savings account. However, be wary of burning out. Your mental health is more important than trying to achieve any savings goal!
Cancel any unused subscriptions
Subscriptions are a money-making dream for a lot of companies. This is because once a customer subscribes to their service, they’re more reluctant to cancel their subscription—even if they hardly ever use it.
This, in large part, is due to the sunk costs fallacy. When applied to a subscription service, the sunk cost fallacy means that cancelling a rarely used subscription is hard, as you’ve already paid so much money for it. Therefore, canceling the subscription would mean accepting that all the money spent on it up until that point has been wasted. But, by delaying canceling the subscription, it still feels like there’s a chance the service might eventually be used. In general, though, few of us ever fully use our subscription services to their fullest. So, it’s more cost-effective to cancel any unused subscriptions now, rather than hold out for a time when you may hypothetically use it.