The superfast way to become a home-owner. The Coffee & Sandwiches Method. Try it – you may like the taste of it!
So you want to buy your first property – and finding your deposit or down payment seems as likely as aliens landing at Windsor Castle this weekend and gate-crashing the royal wedding of Prince Harry and Meghan Markle.
1. So what can you do? Are you trapped as a tenant for the rest of your days?
Thankfully, the answer is “No”. My solution is what I call the “Coffee & Sandwiches Method”.
It is a method available to anyone and it is one I used myself when I bought my first home. I raised a deposit in a year and bought my first property in my twenties.
Within 2 years its value had almost doubled. I sold it, bought a bigger apartment and two investment properties – a great start to my property investment career!
And I put it all down to the Coffee & Sandwiches Method.
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2. So how does the Coffee & Sandwiches Method work?
Well, first of all a word about the name. Coffee and sandwiches are for me the poster boys of non-essential spending – the technical term is “discretionary spending”.
Of course, I am not talking about the coffee you make at home for a few pennies or the sandwiches you can rustle up on your dining table without breaking the bank.
I am talking about the expensive coffee you can buy at the likes of Starbucks and Costa and the expensive sandwiches (and/or other food) you buy for lunch each working day.
Of course you may not spend a penny on pricey coffee or lunch-time sandwiches each week. But you are certain to be splashing out on other types of discretionary spending.
The Coffee & Sandwiches Method is not necessarily about coffee and sandwiches– it’s about slashing expensive discretionary expenditure in general.
Eliminate all your discretionary spending to travel the superfast route to raising a house deposit.
There may be certain items of your discretionary spending which you cannot bring yourself to cut – perhaps your daily cup of pricey coffee! No matter – cut what you can, as much as you can.
THE MORE DISCRETIONARY EXPENDITURE YOU DISCARD THE MORE EFFECTIVE THE COFFEE & SANDWICHES METHOD.
Put the savings you make towards your house purchase deposit fund and see how fast it grows.
3. Savings possible with the Coffee & Sandwiches Method
Here are some examples of the sort of impressive savings you can make by systematically cutting down or cutting out avoidable discretionary expenditure over a period of a year.
The mix and amount of discretionary spending will of course vary from person to person. The figures are illustrative but are based on real UK prices at the present time.
Just over £16,000!
That is an amazing amount after just a year. If there are two of you looking to buy a house together you could double the amount to £32,000.
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4. The power of the Coffee & Sandwiches Method
Whichever way you look at it, the Coffee & Sandwiches Method can realise significant savings fast. And remember that it is not the only way you can make savings.
Other ways include reducing your rental costs, lowering your utility bills, saving on travel costs and shopping at budget supermarkets.
The Coffee and Sandwiches Method can supersize your deposit fund superfast.
I was able to raise my deposit relying on the Coffee & Sandwiches Method alone. I was clearly going mad on the discretionary spending. But hey that’s the sort of thing you do in your twenties…
HOWEVER, IF YOU WANT TO RAISE A HOUSE DEPOSIT FAST, YOU NEED TO TAKE A CHAINSAW TO YOUR DISCRETIONARY SPENDING.
Binning your discretionary spending for a year won’t kill you. If you prefer, reduce your spending over a longer period for a less impactful, more leisurely route.
The main point is clear – the Coffee & Sandwiches Method can help you get on the property ladder – really fast!
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Rebel Property Coach
My website is: www.rebelpropertycoach.com
Categories: 02 Buy