Have you always wanted to buy a beautiful home of your own? It can be tough but it is completely worth it. Buying a house is no cakewalk. You need to be consistent in saving money and save enough to buy a suitable house for you and your family. We realize that it is not at all easy to save money. However, if you’re determined to buy that house you’ve been eyeing for a while then you should go for it. We are going to discuss a few tips and tricks to save money to buy the house of your dreams.
Create an Auto Deduction in Your Account
If you have trouble saving money then you can create an auto-deduction in your account. An auto-deduction account will automatically deduct a percentage of money from your account when you get it and it will be transferred to a separate account. That separate account could be used for saving money for your first down payment. This will save you from frivolous spending and impulsive buying. It will be easier to save money that you don’t have. This will help you see the progress you’ve made towards saving and it will motivate you to do better.
Set a Target
Before you start saving money for a house, you need to set a target for yourself. You should stay updated about the market prices and how much your first down payment would cost you. You need to consider the interest rate and all the details before you set a target for yourself. This can still be tricky to handle so for starters, you can go for the HDB housing plans as public housing schemes offer quality homes that are easy on the pocket. Going for this option will help you save money as you will be working towards achieving a realistic goal. The more money you’ll save, the better you’ll feel about getting closer to buying your dream house. Setting a target will also aid you in creating a strategy for saving up. You will get a clear idea about how much time it would take you to save up approximately.
Track Your Spending
You need to create a budget and track your spending to keep a check on where your money is going. It would be a good idea to cancel all the auto subscriptions including Netflix, Spotify, gym, etc., and ask yourself if you really need them. If you never have enough time for Netflix or the gym, then it’s best to cancel the subscriptions and save on them. You can even get shared subscriptions for some of these. Splitting the cost with your friends, if you can, is best. These costs may seem harmless and insignificant but they really eat up on half of your budget.
Get a Part-time Job
If you’re eager to get the house of your dreams then you can consider working part-time on top of your full-time job. This can be short term but it can help you save quickly. Working on weekends or on and off weekdays can help you achieve your goals at a much faster rate. Depending upon your timeline, you can consider how many days you can work without getting burnt out. You can start taking up freelance projects to help you work as it gives you the comfort of working from your home.
Make the Right Use of Windfalls
A windfall is basically that bonus cheque or gift money that falls in your lap on holidays or special occasions. You may be tempted to use the money on a well-deserved vacation or the new video game set. Still, it is important to stick to your goals and deposit the money in your savings account. Saving windfalls can significantly push your timeline forward. This will have long-term benefits as it will save you from working long hours at your part-time job and making other difficult and smaller money-saving efforts.
Share Your Goals with Others
Sharing your goal with your friends and family can help you achieve it faster. This way, they can motivate you towards reaching your goal and help you stay away from any impulsive shopping free or frivolous spending. Your friends and family can offer you support and hold you accountable. Being vocal about your goal can also help you in other ways. Your family may give you cash instead of money for your birthday or anniversary. With the right support system and determination, you can achieve your goals.
If you’re consistent and determined enough, you will be able to buy your house in no time. It is going to take a lot of effort from your side including lesser nights out, working a part-time job, etc. However, if you’re crazy enough to dream then you should also be ready to turn it into a reality. Make sure to follow these tips and save for a house. Every little effort counts, so don’t give up and keep going.