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