On many occasions, the set of small expenses that we make without realizing it are the ones that take us the most away from the dream of buying our own home. But if you have already decided to save, here is how to avoid small expenses to meet your goal.
Saving can be difficult if we do not change some aspects of our lifestyle. According to personal finance experts , one of the main reasons millennials’ savings don’t grow is due to so-called ant expenses.
Ant expenses refer to those purchases and payments that are made in small amounts, but that together form a large part of the capital losses that we experience each month. These are some of the most common ant expenses:
- Clothes and shoes
- Eat in the street
- Night outings
- Service subscriptions
The most dangerous thing about these expenses is that we don’t realize the great damage they do to our finances until we take stock of our cash flow. That is why we tell you how to avoid ant expenses with a simple adjustment in your habits, and that way you can save to buy your own house .
How to avoid small costs to buy a home?
- Set a monthly budget
- Decrease the frequency of your outings
- Eat at home more often
- Stock your home in local markets
- Avoid impulse purchases
- Create a savings account
Set a monthly budget
To know how to avoid ant expenses, it is important that you identify which ones are yours. For this, it is advisable to make a monthly budget in which the income and fixed expenses that are necessary are taken into account, such as water, electricity , internet, rent, etc.
Once the above is considered, you will be able to have a clear picture of the money that you have available on a monthly basis. Now think about those other expenses that are not essential, for example, do you really need to be subscribed to all those streaming platforms?
To have good financial health , you must know what are the payments you make each month that you can do without, so you will save a lot of money. For this, it is also a good idea to set a monthly savings goal.
Decrease the frequency of your outings
Have you ever thought about how much money you spend every time you go to party or dance? A good chunk of cash flow goes to entertainment . This does not mean that you have to stop having fun and go out with your friends, but if you have to limit the number of your outings and also establish a spending limit that you should not exceed.
Eat at home more often
Fast food or delivery may seem like the salvation to our problems in some circumstances, but it should not become a habit. If you get used to buying street food every day, chances are it will be difficult for you to save money.
To eliminate this expense, or at least to reduce it as much as possible, try cooking yourself to eat at home or to take your own lunch to work. In this way, you will see good savings at the end of the month.
Stock your home in local markets
An expense that you cannot avoid is the supply of provisions and basic products, however, if you can take steps to save a little money on that fixed expense. For example, you can choose to buy in local markets in your neighborhood.
In most cases, the prices found in the supermarket are higher than those offered in a market close to home . By buying from these establishments, you are ensuring that you buy a product with a fair price and of good quality. In addition, you contribute to the economy of the neighborhood.
Avoid impulse purchases
Because we are surrounded by advertising all the time, impulse purchases are very common. An impulse purchase is acquiring a product that you don’t really need. These types of transactions are generally made spontaneously, that is, at the time of viewing the product and without premeditation.
In this way an important part of our capital can go, and that is why they should be avoided. So the next time you see something that you like, ask yourself if it is necessary or urgent to acquire it, if the answer is negative, better keep the money you were going to spend on it in your piggy bank.
Create a savings account
A great recommendation to avoid falling into the temptations that ruin your goal of buying a home is to create a special account to accumulate your monthly savings. This way you will have separate the money destined to cover your expenses and the amount that you have established to save each month.
In most of the online banking platforms there are tools that can help you keep track of your payments so as not to overspend.
Now that you know how to avoid ant expenses, you can start saving to buy a home you’ve always wanted.