How to save for a deposit for your new home?

When looking to buy a new home in Malta one of the biggest hurdles buyers face is often the large deposit required. Knowing how to save can mean the difference between landing your dream home or remaining stuck within the expensive rental market. Here we look at ways you can save money fast so that you can finally begin the process of stepping over the threshold of your very own home. 

Switch to digital or card payments and keep track 

Photo by Markus Spiske on Unsplash

The very first step to saving when you decide to buy your new home in Malta is to know exactly where you stand with your finances. It’s amazing how often we spend money without even considering it! It can also be difficult to keep track of any cash payments you make so switching to card or digital payments for a few months before you begin to save will allow you to see exactly how much you spend and on what. This can easily be calculated using your bank statements providing you with the perfect factual groundwork for making a solid savings plan. 

How to calculate how much you need to save for your deposit? 

Getting the maths right when you decide to buy a house in Malta is vital. Sit down and go through your bank statements taking note of all outgoings, quite often people have subscriptions they’ve forgotten about or discover that they spend a small amount each day on something unnecessary which amounts to hundreds each month! You may be surprised by how much you’ll be able to save just by cutting small unnecessary payments or direct debits out. The big question you should ask yourself when considering your outgoings is ‘Do I need it or just want it?’ This can quickly help you figure out what spending is a must and what spending can be cut out.

Once you’ve cut out, cut back!

Once you’ve cut out unnecessary payments it’s time to focus on life expenses or payments you can’t avoid to see how and where you can cut back and save. Below is a handy checklist that will help guide you through where you may be able to make cut backs that will allow you to save quickly and buy your home in Malta.

Utilities - Look at your expenditure on electricity and water and consider how you can reduce your consumption of both. Things like using a washing line instead of a tumble dryer, not leaving items on standby, switching to LED bulbs and taking shorter showers will all help you save both money and the environment. Whilst each cutback may seem small and insignificant the saving you make as a whole will be considerable. 

Food - Food is often an area where we can make big savings. Takeaways and eating out can amount to eye watering sums each month without us even noticing and home cooking really can save you a fortune, it’s also healthier so try to eat at home as often as possible! Also where and how you shop can make big savings such as opting for a supermarket's own brand instead of a fancier more expensive brand or buying fruit and vegetables from a local instead of a supermarket. These little regular savings soon add up.

Cut out bad habits - Even a cheap night out partying can severely dent your wallet. From the cost of transport to those hangover-inducing cocktails, the costs soon start to add up. If you simply can’t do without a night of fun then consider inviting friends around instead of hitting the pubs and clubs but watch those costs carefully! If you have other bad habits such as smoking then it makes sense to cut these out all together for your health and to save a substantial sum each month that can then go towards buying a house in Malta.