Financial Planners in Calgary and Buying Real Estate
Buying real estate can be a great investment, but it often requires a significant amount of money upfront, which can also mean managing your money wisely for the time being. Saving up for a down payment can be a challenge, but with some careful planning, budgeting and assistance from professional financial planners in Calgary, it is possible to achieve your goal.
Learn about some tips on how to save and properly manage your money, so you can eventually purchase real estate without going over budget.
Create a budget
The first step to saving money is to create a budget, which can be guided by a professional financial planner in Calgary near you. A budget and a financial planner will help you understand where your money is going and where you can make cuts. Start by tracking your expenses for a month or two, including everything from rent/mortgage payments, utilities, groceries, entertainment, and any other recurring bills. Once you have a clear picture of your expenses, create a budget that takes into account your income and your essential expenses. Be realistic with your budget, and don’t forget to account for unexpected expenses.
Cut back on expenses
Once you have a budget, look for areas where you can cut back on expenses. This could mean reducing your dining out budget, cancelling subscription services, or finding a more affordable apartment or house. Look for ways to save money without sacrificing too much quality of life. For example, if you enjoy going out to eat, try cooking at home more often or finding less expensive restaurants. You can also try to negotiate better rates on your recurring bills, such as your cable or internet bills.
Increase your income
Another way to save money for a down payment is to increase your income, which could entail working overtime, taking on a part-time job, or finding ways to earn extra money on the side. For example, you could start freelancing or selling items you no longer need online. Look for opportunities to earn extra money that won’t interfere with your regular job or other commitments.
Set a savings goal
Once you have a budget and have identified ways to save money, set a savings goal. This will help you stay motivated and focused on your goal of buying real estate. Determine how much you need to save for a down payment and set a timeline for achieving that goal. For example, if you need to save $50,000 for a down payment, you might set a goal of saving $1,000 a month for the next 50 months.
Automate your savings
One of the best ways to save money is to make it automatic. Set up automatic transfers from your checking account to your savings account each month. This will help you save money without even thinking about it. You can also consider setting up a separate savings account specifically for your down payment. This will help you keep track of your progress and avoid dipping into your savings for other expenses.
Consider alternative financing options
If you’re having trouble saving enough money for a down payment, consider alternative financing options. For example, you could look into government-backed loan programs like FHA loans that require a lower down payment. You could also consider partnering with friends or family members to buy real estate together. Just be sure to have a clear agreement in place and seek legal advice before entering into any joint ventures.
Saving money for a down payment can be challenging, but it’s not impossible. By creating a budget, cutting back on expenses, increasing your income, setting a savings goal, and automating your savings, you can achieve your goal of buying real estate. Don’t be afraid to explore alternative financing options if you’re struggling to save enough money on your own. With some careful planning and perseverance, you can make your real estate dreams a reality.
Playcheques is Alberta’s solution to astute and efficient financial planning. With our team of professionals who are eager to advise our clients with educated and helpful advice, we strive to be the best financial planners in Calgary! For more information about our financial planner’s services at PlayCheques Financial Solutions, visit our website at https://www.playcheques.com, or call us at 403 837 9344!