Get ready to turn your dream of owning BC property into a reality! Saving up for a new home is a thrilling journey, but it can definitely seem overwhelming. Don’t worry – we’ve got you covered. By changing a few spending habits, you can transform your finances and get that much closer to becoming a homeowner. With a little bit of grit and determination, you’ll be unlocking that front door in no time! Here are 5 spending habits that might be getting in the way of you buying your dream home…

1. Spending Without a Plan

Countless individuals fall into this common pitfall when managing their finances – spending without any sort of plan. Doing so results in a lack of control over your expenses and can lead to overspending and losing track of where your money is ending up. Fortunately, there is a simple solution to this challenge: develop a budget.

Begin by listing all of your monthly income and expenses, including necessary bills, groceries, and discretionary spending. Use this snapshot of your finances to create a solid spending plan and do your best to stick to it. But be sure to account for some “fun” spending when building your budget as well. Not only will this help you stick to your plan, it also allows for some free spending without the guilt.

Not sure where to start? Luckily, the internet is overflowing with online budgeting tools and apps that can be a helpful addition to your financial management.

2. The Cost of Convenience

Although convenience is a luxury we all crave – and have grown reliant on – it can take a toll on our wallets. One of the biggest culprits: food. While grabbing food to-go or dining out is undeniably appealing, it often comes with a hefty price tag – especially in BC. From drive-thru meals to delivery fees, these expenses may seem small, but they can accumulate fast. However, by planning ahead and cooking at home, you can save money and reap the benefits of healthier, more satisfying meals. With these simple changes, you can avoid breaking the bank while getting the most out of your food.

3. Not Monitoring Your Spending

Spending without keeping track of your overall expenses can lead to overspending and financial confusion. To overcome this challenge, start by regularly checking your bank and credit card statements. This is especially important when you have payments coming up. Think: rent, internet, utilities, student loans. These timely expenses won’t feel so overwhelming with proper monitoring. Consider utilizing budgeting tools or apps to track your expenses and identify opportunities for cost-cutting in BC.

4. The Danger of Impulse Purchases

It’s no surprise that spontaneous spending can quickly put a dent in your “dream house” jar. Particularly when purchasing unnecessary or unused items. To combat this, pause before making any unplanned purchases. If you come across something you’re just dying to have, take a moment to evaluate whether you truly NEED the item.

For example, say you stumbled across a pair of pants in a store window. Before charging to Visa, give yourself a few hours, days, weeks if you can bare it, and see if you’re still thinking of them after the initial excitement wears off. If you still can’t get those perfectly faded pair of Levi’s out of your head, then go ahead and buy them (if your budget allows). Most times, however, you’ll probably forget about them and be grateful you saved $100. This also gives you time to search for potential savings elsewhere. Conducting a price match and comparison can help you reduce expenses in the long run.

5. Take Control of Emotional Spending

Emotional spending is a challenge faced by many, and it can be a particularly hard habit to break. When the going gets tough, turning to retail therapy feels good at the time, but it can quickly unravel into overspending and financial stress. If this habit is affecting you, there are steps you can take to curb it. Rather than shopping, explore options such as exercise, spending quality time with loved ones, or trying out new hobbies as ways to cope with your emotions.

6. Look Into Money-Saving Programs

As a first-time homebuyer, there are money-saving opportunities all around you! Let’s talk about the First Time Home Buyer Program in BC. This program can provide eligible first-time homebuyers with a loan of up to $37,500 or 5% of the purchase price, whichever is lower. This interest-free and payment-free loan can be used to increase the down payment, which can help reduce mortgage payments and save you money in the long run. Additionally, the low-interest rate on the loan after the first five years can help borrowers save money on interest charges. By making homeownership more accessible and affordable, the First Time Home Buyer Program can be a valuable tool for saving money and achieving your dream of owning property in BC.

To learn more about the program and to see if you are eligible, visit the BC Housing website or contact one of our qualified real estate professionals, like Reiko Munro. As our First-Time Homebuyer Specialist, Reiko loves to work with clients who are breaking into the real estate market. Her particular talent for building strong relationships with her clients and engaging in successful negotiations makes her the perfect guide for new homeowners. Her experience and passion allow her to streamline the home-buying process, turning a daunting experience into an enjoyable one for any new buyer. Learn more about Reiko here.

In Conclusion…

By adopting the right habits, you can save money and turn your dream of being a homeowner into a reality. Consider setting a budget, analyzing your spending patterns, crafting a meal plan, exercising patience by waiting a day or two before making purchases, branching out to new coping mechanisms, and exploring incentive programs for first-time homebuyers in BC.

While changing your spending habits may feel like a sacrifice at first, you’ll realize how empowering this change can be. Breaking unhealthy spending habits and investing in yourself – and your future home – is far more beneficial than that $3 Uber Service Fee. If you need guidance or a dose of encouragement, our Langley, Surrey, and Cloverdale realtors are here to help you. No matter the current state of your bank account, you deserve to have the home of your dreams. And our team is here to help you get it!