Admittedly the pressure to have a private home increasingly felt, especially when the rental rates occupancy rose from year to year. If the portion of the monthly money much used to pay rent, then when to start saving to buy a new house?
Relax, you are not alone. Just like other tenants, financial problems are still the main obstacle to owning a home. The first home buyer must be more creative to manage finances in order to set aside the down payment.
Perhaps managing your finances frugally feels heavy at the beginning. However, it would be worth the advantage of owning a private home. For example, a rented bill may be transferred to a home installment which is a valuable asset investment. Then you can freely renovate the house according to the tastes and needs of the family.
So, how do I save a down payment to buy a house?
Starting from a Clear Saving Plan
Before starting to save, it is important to set definite targets and financial plans. To apply for a mortgage, you will need a deposit of 30 percent of the sale price of the house.
In addition to the DP money, leave some money for mortgage fees and others. Determine home prices that fit your monthly installment capability. Also read: Buy a House? Budget also Additional Expenditures
To be more clear, you can consult with an agent or a banking provider of mortgage products. If it is, then create a clear savings target.
Tip # 1: Cut out the expenses
Time to start saving by reducing monthly expenses. Some of the following ways can make you save money monthly.
- Stop gym membership
- Reduce the eating schedule outside
- Cut out the clothing budget
- Shop monthly with the cheapest brands / price tags
- Unsubscribe from cable television service
Tip # 2: Working oddly
If you want to supplement your monthly income, then try to take a side job according to your ability. As an example:
- Exercise regularly? Walking around the house in the morning or evening can make you healthy without having to join members of the gym.
- Have a teaching soul? You can make a paid tutorial via video or come directly and sell it at a bit tilted rate. Offering training services is the easiest way to make money.
- Happy pet? Provide a comfortable home for a cat or dog daycare and rent it at competitive rates.
Tip # 3: Stay consistent and sell stuff
Think twice before spending unnecessary money. This can help you achieve your target savings faster. Check out some of the following ways
- Do you have something to sell? please change unused goods into money through online marketplace sales or open a garage sale.
- Can the monthly bonus money? Immediately save it into a savings account before it is used for others.
Tip # 4: Looking for a buddy / relocate
Another way to increase your income is by finding roommates to share rental rates. If rental rates are higher, you may also consider moving a more affordable dorm room.