How to Save for the Cost of a House Extension
One thing that most people know is that a house extension will cost quite a lot. What they may not realise is that there are many ways of getting what you want for less. A house extension will certainly enhance your lifestyle and may save the need to move into a bigger home. If you consult with a financial planner to find the best ways of making your money go further, it can cost less than you may think.
The ideal scenario is to get a financial advisor to do some financial planning on your behalf. They not only show you how to save money, but may be able to ensure you get a bigger tax return. Even though their advice costs, you will save much over the following years once they put you on the right track. So a house extension can soon be well within your budget.
Whether you take out a loan to pay for your extension or save up the money first, there are many ways to save without too much pain. You can save on the costs of living and put that extra into your extension fund. And yes, it is important to set up a special account for it, so you can see the dollar amount rising and get even more motivated.
Here are some ways to save: –
- Do you love to meet your friends for a coffee several times a week? Instead, ask them to your home. There are many great coffees available on the supermarket shelf and it is a lot cheaper in the long run to have it at home. Don’t forget to put the money you save into your extension account.
- Get healthier while saving money by getting out of the nicotine habit. Calculate what you will save over the year if you stop smoking 3 packets a week.
- Cut back on the alcohol. Much of the cost of alcohol is in the ‘shouting’. You are paying for everyone else’s consumption as well as your own. Keep a few beers in the fridge if you must, but avoid the pub.
- Avoid junk foods. If you are in the habit of getting a tub of chicken every week, replace it with a cook-free salad. You’ll save heaps, lose weight and be healthier – and so with the kids.
- Paying off a loan fortnightly instead of monthly will mean you are paying an extra month per year, due to all those extra days in most of the months. This can save you a great deal in interest over the life of the loan.
- Getting a secured loan will enable you to access a lower interest rate. Use your assets to get this, but be sure you can pay it off, or you might lose that asset if you default.