Buying a home is an expensive investment, which is why many people save first for it. Here are a few tips to help you save for it more quickly.
Know How Much You Need
Any personal finance advisor will tell you that you can't save towards a goal if you haven't defined the goal property. Therefore, know what kind of houses you are interested in buying and how much they cost before stating your saving plan. Don't forget that buying a house requires much more than the down payment; other costs you will need to cater to include earnest money deposit, closing costs, and insurance costs.
Create a Realistic Savings Account
Once you know how much you need to buy a home, it's time to determine how you want to save for it. Regular saving is best, but you have to come up with a sustainable amount. Sure, saving as huge a chunk of your savings as possible may seem like the best way to realize your goal sooner, but in reality, it may not work. In fact, it's advisable to leave room for emergencies or fluctuations in income.
Open a Dedicated Bank Account
Don't mix your house buying savings with other funds, such as your emergency funds or the funds you use for day-to-day expenses (from the current account). Doing that may make you feel like you have a lot of money in the account, but that may be misleading since a good percentage of it will not be actually going towards the purchase of the house. Therefore, open a dedicated account for this purpose so that at any time, any money is meant for buying the house.
Make Your Savings Automatic
Saving is not easy; it's especially difficult if you have to take money from one account or from your paycheck and deposit it into the savings account. The best way to overcome this difficulty, if you really want to own a home fast, is to make saving automatic. Designate a percentage of your income that your bank, or manager, or accountant, or whoever handles your income automatically diverts and deposits into your home buying accounts.
Deposit Windfalls into the Home Buying Account
Many people enjoy financial windfalls every now and then. You may get a signing bonus when you get a new job, a performance bonus at the end of the year, or a lucrative contract for your side gig. Whenever you get such a windfall, deposit most of it (or all of it, if you can do that), into the house buying account to hasten your home ownership days.Share
23 January 2018
About a year ago, I realized that there were some serious issues with our home. I could tell that we needed to do something to upgrade our residence, so we started looking for a different property. I was able to find a really nice real estate agent who could help, and they worked hard to pair us with the perfect home for our budget and lifestyle. Now I can honestly say that I love my home, and I couldn't have chosen a better one on my own. Check out this blog for great information on improving real estate holdings and finding a better home.