Budgeting for first time buyers in Malta
As a youngster, the thought of one day having a place to call my own felt a million years away, though lately it seems to be edging closer and closer. I mean we might be getting better at keeping houseplants alive but money still doesn’t grow on trees. The money has to come from somewhere right? Babysteps are key to starting off a venture such as this, so let’s start slow and do it right. If you’re in need of some first time buyers’ advice to help you start budgeting in the best way, follow our handy tips to get you budgeting for your first property.
Decide on your budget goal
Make your first baby step and gather a list of all the expenses you think you need to consider before starting to save. Include all your current costs, your daily coffee, your weekly Bolt delivery and your home plant budget. I mean if you follow House Plant Club on Instagram, you’re going to need a chunky sum. Don’t forget the bigger expenses too, your car costs, including insurance and petrol, any loans you might have and your entertainment budget. If you don’t know where your money ends up at the end of the month it’s impossible to know how much of that is feasible to save so be honest with yourself no matter how much that total might hurt. Check your bank statements to understand what you’re spending most of your money on and how much you spend on necessities and luxuries. Choose which budgeting template will help you keep organized and visualise your expenses.
There’s a first time for everything, this being your first time saving for something so big calls for some guidance to help you figure it out. First time buyers can feel overwhelmed both mentally and financially. That's why we've put together this awesome guide, full of helpful insights and info on how you can save €13,000!
What expenses to consider when budgeting
Your next baby step is figuring out what you can comfortably afford to save every month. List number 2 is to calculate all your future expenses and what you’re budgeting for, consider all insurances, homes costs, and loans. The average home deposit is about 20% of the total price of your first property, although don’t hold yourself to that as it is possible to find for less especially with our first time buyer schemes in place. Check out our latest first time buyer packages you could benefit from. If you need some help figuring out what should go where and how much and need some assistance, budgeting apps are always a good idea. The balance lists out some of the best budgeting apps available to give you a better idea of what to go for.
Budgeting apps and online banking are your friends
Revolute will surely become one of your most used apps as it’s a great way to keep track of expenses and gives you a breakdown of all your transactions, whether you want to see them or not. And the best thing about it? You can have access to all your savings in volts where you can see how much progress you’ve made. If having such easy access to your funds is too tempting for you then open a savings account in a different bank - out of sight, out of mind they say. Don't wait till the end of the month to save what you have left, the great thing about Revolute is that you can set your volts to be automated monthly. This takes the time and stress out of saving as it’s done for you after deciding how much you’re willing to save up and put it into a volt. It’s just like an adult version of a piggy bank.
How can budgeting help you?
Budgeting can help you reach your goal faster, especially if you cut down your expenses. Why not consider moving to a cheaper place if you’re currently renting out an apartment in Malta or Gozo. Or if you'd prefer staying at your current place maybe think about getting a roommate to help you cover the costs. Be smart with your daily expenses and cut out the bad habits that will cost you cash flow. To put it into perspective, a packet of cigarettes a day will put you down €168 a month.
Remember it’s a slow process but the reward will definitely be worth it.
Main blog photo courtesy of Cottonbro