Buying a home in an urban area that boasts luxury and an elitist lifestyles like Dubai can be challenging. The city speaks of an unmanageable expense that hardly leaves anything you can label as saving in your pocket. It is an all-too-familiar sentiment showering down on an apartment dweller trying to save up.
Ironically, when you are an expat who is living in a rented apartment, saving money on an average salary can be a fatiguing task. When a huge chunk of one’s income goes to a landlord, it is difficult to muster up cash for a down payment. The stress of meeting the needs and buying your dream home gives you nightmares. Hence, the only solution available is to be patient and save money to be able to select one of the new apartments for sale in Dubai.
Here is a list of ways to help you save money for a down payment. Let’s dive in:
Reduce Your Debt
High-interest credit card debt can trap you in an infinite loop of payments with an empty account you opened to save for a down payment. One approach to handle this chaos and generate some cash to put in your savings account is to focus on budget management, become more organized, and cut down unnecessary payments.
You can create your cash flow by just scrutinizing your debt. Make a spreadsheet for each credit card. Create columns for the current amount, current limit and interest rate. Then, search out the balance transfer alternatives to reduce your monthly minimum payment. If you can identify interest savings there, the simplest strategy is to reduce the debt by paying more than the minimum.
Most importantly, reducing your debt can also help to improve your credit score and balance your credit-to-debt ratio. It will yield an opportunity for you to get accepted for a mortgage once you’ve saved up for a down payment.
Find A Roommate
Unless you own a cat or dog that can contribute to the rent, having one or two roommates is a proactive approach to saving money. The advantage is that the rent will be divided in two or three ways. Thus, you could easily save thousands of dollars a year by rooming with other people.
Reconsider Little Luxuries In Your Life
We all love our streaming subscriptions, frequent late-night food deliveries, fine wines and self-pampering days at a salon. Although these things make us happy, they are little luxuries that are just adding to your expenses. They are fooling you as, collectively they make a big chunk of your budget.
If you have a subscription to Hulu, Netflix, or Disney+ on top of cable television, ask yourself which one you can sacrifice. Also, you need to close the gym membership if your apartment complex has a free workout area.
Furthermore, vacations are nice and help you get away from tedious tasks. However, it would help to hold back from traveling until you have achieved your down payment goals because vacations are not cheap.
Save On Must-Have Services
It can be rough while trying to save on the must-have services. For instance, you can save on your auto expenses by finding cheaper car insurance or using public transportation services. It will save on fuel and maintenance. Above all, your insurance company will lower the premium because you are not driving frequently.
Moreover, you can save money on household bills through a few changes. Change your internet plan to a package with slower speed and fewer channels. In case of electricity bills, turn down the air conditioner and switch off unnecessary light bulbs when not in the room.
In addition, you can save on groceries. Try buying relevant food items from a local grocery store at a cheaper rate.
Take Advantage of The Gig Economy
If you are still struggling to save up money for a down payment as a renter, try taking advantage of the gig economy. You can even make money after your office hours. Freelance and the gig economy, such as delivering or driving as an Uber driver, can benefit you significantly.
Moreover, everyone is selling something through a side hustle. You can initiate a local website to sell things or a blog website. It is a fabulous way of bringing in a little more cash to your savings account.
To conclude, you can save money as a renter in Dubai by simply cutting down some expenses. It will be a tough and long ride, but eventually, you will be sitting in your dream house. There is a possibility that you might end up closing a deal on a luxury villa for sale in Dubai. All you have to do is stay true to your ambition, and your hard work will pay off!