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Seven useful tips for saving for a home

Jul 20, 2020.

Buying your own property is becoming increasingly difficult in Switzerland. It is therefore all the more important to start saving money long before you move out on your own and start renting, with the aim of eventually buying your own home. Every centime counts! So, if you’re still living with your parents and spending relatively little, it’s never too soon to start. And with young people in Switzerland now leaving home at the average age of 24 and 25, those in their late teens or early 20s have a real opportunity to get ahead of the game.

That said, saving for a deposit is never easy. And while this makes starting early all the more important, it can also make the challenge seem all the more daunting. Fortunately, there’s plenty you can do to make it easier. To get you started, here are our top tips for saving for a house.

 

 

1. Pay off your debts and loans

While it might be a good idea to start putting a little away each month to get into the habit, your first objective should be to pay off any debts as quickly as possible. This is especially important for the  18-24 age group. According to the Federal Statistical Office, this group has the most debts.

 

 

2. Set a realistic goal

Remember, your first home is unlikely to be your dream home. Plus, you’re not just saving for a deposit. You’ll also need to buy furniture and pay agents’ fees. So, ensure you set a practical goal—one you can achieve in a realistic timescale and that gets you an affordable mortgage with the shortest possible term. As a general rule, the shorter the term, the lower the mortgage interest rates and the lower the monthly charge.

 

 

3. Automate your savings

In choosing the amount, try to find the right balance. You don’t want saving for a deposit to take too long, but you also don’t want to stretch yourself too thin. Then, take some of the effort out of saving by setting up an automatic payment on your monthly payday.

 

 

4. Create a budget, reduce your outgoings

If you’re going to spend less, you need to know what you’re spending. From Wally to You Need a Budget, there are now more apps than ever to help you do it.

 

 

5. Get a second job

Spending less is one way to have more money to save. Another is to earn more. From delivering pizzas to driving an Uber, there’s plenty you can do to boost your income.

 

 

6. Sell your stuff

If you own any big-ticket items you don’t need, selling them could net you some valuable extra cash. Ricardo or Tutti.ch are useful platforms for selling belongings that you don't need anymore. Just be careful not to sell anything you might need in your new home!

 

 

7. Find an accountability partner

Whether it’s a parent, partner or close friend, having someone to hold you accountable is a great hack to avoid slipping into bad habits. Whoever you choose, tell them all about your savings goals and ask them to check in with you regularly to ensure you’re on track.

 

 

The secret weapon: pacing yourself

Saving for a home is a marathon, not a sprint. And, as with any marathon, the trick is to pace yourself. You’re far more likely to give up if you overdo it and make yourself miserable! Instead, don’t work too hard. Don’t sell too many things. And don’t save too much, too soon. The surest way of successfully saving for a deposit is to set modest goals and achieve them consistently.

 

Finding the right savings account or investment fund can help you achieve your financial goals – explore Generali’s offerings now.

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