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We saved $95,000 in 16 MONTHS | How to get money for Downpayment | Save Money for a House in Canada - YouTube
Channel: Canadian Parinday
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hello guys welcome to canadian parinday
i'm so excited today should i share the
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news oh yeah we should actually
so guys two of our subscribers have
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reached out to us on instagram sharing a
very good news
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recently and our videos have
helped them being motivated and go for
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the new construction
so we are very happy because you know
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our experience our things are actually
helping someone
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especially to you people sitting on that
side of the camera and watching
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us
[Music]
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a lot of people has asked us in
different videos that how we actually
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manage our down payment
as we have told we manage 20 percent it
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is a very important and crucial question
in a nutshell this whole episode is
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divided into three part
how we save the money for down payment
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our strategy to cut down our expenses
and third how we make extra income to
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save for the down payment
exactly that's exactly what i said at
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our time when we used to reach out to
our friends
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asking their experience how they saved
monies they all used to say
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cut down expenses don't go out don't go
for vacation so basically
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live a life without any use and we did
follow those steps for a couple of
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months
not practical we have to sacrifice a lot
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so that's how we actually came up with
our own strategy that actually helped us
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save a lot of money
and in a better way exactly first thing
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that you need to know is the amount of
down payment you need to save
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for example in our case we always
targeted to go
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for 350 to 400 000 house
and for that we plan to have five
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percent of down payment as we were
looking into a reset
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house that time but sooner after you
know months of research
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and being out in the market we realized
it make more sense to go for the new
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build
house that was giving us extra 15 months
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to save
and which way we can actually jump from
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five percent saving to 20
so i totally agree this time the market
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is super
crazy if you are out in the market
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probably looking for 600 700
000 houses the figures for saving might
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be different for you
but the strategy remained the same
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so second most important thing is how
much time you needed to save this down
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payment
so say in our case since we moved our
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strategy
for buying a resale house to a brand new
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home we got one and a half years which
is a gain
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advantage for us but it might be
different for you say for example you
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just started working and you probably
need
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two t4s generated in order to qualify
the mortgage
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that's a very good point because
recently one of her friend he's
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suffering as he don't have two t4s
so neither of a bank is actually giving
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him pre-approval
and it's very this time is very
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important as well because this is the
time you are building your credit
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history you are planning to get your 2t4
and in additional you are saving for
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your down payment so these three things
go hand in hand
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[Music]
the profile that deepak and i have
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worked on here the salary ranges from 60
000 to 85 000
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and our salary take home used to be 8174
after all the tax deduction so the
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second most important thing is you have
to find out how much
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are your monthly expenses so in our case
our expenses were 3 500 per month
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but we will manage to lower it down to
2500
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soon you will be seeing those strategies
in the video so stay tuned
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so we estimated that after 15
months after all the expenses our
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savings will be 90
000 784 dollars so you'll probably be
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thinking that oh
now we save 90 000 so that's good enough
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that's not the case because we take out
twenty thousand dollars from that saving
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and put it in an emergency fund so after
taking out the
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cash for the emergency fund our
estimated amount has been reduced to
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seventy thousand
with the god for witness what if one of
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the partner loses
or her job or if there is any emergency
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in the family that you need to support
so it's always a good idea to have a
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good amount of cash in your bank account
to support you
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at that uncertain time so the next
important thing we did is we paid
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all of our outstanding debts so be it be
car payments
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or any outstanding payment on the credit
card we want to make sure
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that all of them are properly paid up
before we move into the mortgage step
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this week when we're going for the house
we make sure that we have no other
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liability and our focus is just for the
mortgage
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[Music]
so we have opened a separate account
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with
scotia bank that has a high saving
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interest of 1.5 percent
i know it's not a lot but then all the
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money
from the saving goes to that account
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apart from that
the 58 of that salary actually goes to
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the tfsa account which is a tax-free
saving account
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which was further invested into
different options
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like mutual funds stocks bonds
so with all these investment we got
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another two thousand dollar added to our
investment
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[Music]
so in top of that what we did is we got
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a annual raise of around four thousand
dollars both of us
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we save that money and we actually put
it in a separate account which we call
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as
india trip that we're gonna talk about
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more
[Music]
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guys quick question for you so how much
is the renting amount you're paying
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right now don't forget to put that in
comments below because we
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are planning to make a video on renting
versus buying
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so your inputs will be really helpful
now let's talk about the most exciting
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part
how we actually lower our expenses from
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3 500 to 2500
which by the way was a big drop we did a
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really good job on that
you have to sit back relax take a deep
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breath
and you have to figure out what are your
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luxury expenses are
that you can cut and won't hurt you in a
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bigger way
what we started is we allocated budget
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for everything for food for clothing for
buying electronics so that budget was so
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strict that whenever we went out for
shopping we rather used to shop with the
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cash
making sure you know if cash is done no
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more shopping
time to go home and this happens because
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if you shop with a credit card you end
up shopping more than
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out of your budget so that's a smart tip
start shopping with the cash
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instead of eating outside at work every
day i started packing my own lunch
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and that way we saved another thirty two
hundred dollars
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during that time we wanted to buy a
bigger tv
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but we hold that expense and instead use
whatever we already had
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by that we actually saved 1700
instead of going to gym how about by the
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basic equipment that we actually use in
our gym
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and rather start practicing those in our
home at our convenient time
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this overall thing save us 1200
wait we used to buy around 100 worth of
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stuff
in terms of clothing bags and shoes
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what we decided is we won't be buying a
new stuff
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unless we donate one then you know what
with that technique we end up saving
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another 1600
over the span of 15 months
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is your inbox is also full of offer
sales from your favorite brand
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well at least mine were so in order not
to fall into a trap of unwanted sale
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i decided to unsubscribe from those
brand
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and for the item that was masked for us
we start watching out
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the sale on amazon or online portals and
this way we save around six hundred
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dollars
talking about the vacation we both are
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big time lovers of exploring different
countries and city
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so instead of going and exploring north
america at that time you know we opted
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to go
and visit india meet our family and on
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our way back we explored europe for a
couple of days
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now this way we get to utilize the time
with our family
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and we went out for a vacation as well
so by
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saving across all different things we
ended up saving around fifteen thousand
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dollars in the terms of fifteen months
and which is
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a lot of money
[Music]
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apart from the saving cutting down
expenses we use a
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different technique to make extra money
and we call it side hustle right for the
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side hustle that means
earn an extra cash from something that
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you would like to do
so say for example you might like doing
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stitching or you like to drive uber
or say for example you like taking pets
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for the walk
basically any activity without killing
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yourself so in our case i used to teach
undergrad
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students at my college time so what i
did is i started taking classes in a
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neighborhood
only one student at a time for like five
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hours in a week we also sold some of the
stuff that we were not using for a long
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time
that got another 500 so in total we got
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5300
by just doing all these things so now
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our savings has been increased to 76
thousand dollars
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okay google what's your time
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here one thirty one p.m
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so we don't have much time okay so one
hour you might be thinking we are still
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a few thousand
shy from our target amount but we had a
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little extra
saving that we have kept separately now
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those savings came
from our previous smart tips that we
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were doing like we said in our previous
videos that we
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always like renting in a low budget
apartment than going for a luxury one
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so we kind of saved around eight
thousand dollars from that kind of
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option
we are the people who buy less expensive
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card and rather prefer to save money for
the down payment
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so even now we have a honda civic 2010.
so instead of going for the expensive
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and you know the
latest model car we prefer to go for the
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car which was 10 000 less expensive
and more economical on fuel that time so
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we can save faster
the car that we owned we paid it off
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quite early
so we kind of saved around two thousand
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dollars in terms of loan payments
and each and every dollar matters when
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it comes to down payment and you know
what because of all these we had 20
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000 sitting in our account which was all
from the savings
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with all these strategies and tricks we
were actually above our saving and we
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are so proud
of it that you know instead of getting
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money from back home or bothering our
families about it
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we were actually able to save the money
right and you know what that extra money
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was very helpful in getting new things
for the house the appliances and all
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these things
saving for a down payment looked like a
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hard journey
but this journey is possible if you
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follow the smart
tricks and try to cut down your expenses
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i hope with our experience that really
helps you and motivate you and
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regardless which stage you are in buying
the house if you find our videos
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informative and get even the single
input please please reach out to us and
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let us know you are really making us
happy by sharing this news
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and again if you like this video share
it subscribe it
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put that notification button so that you
will not miss the next video next video
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is
renting versus buying
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you
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