8 Money Saving Tips When Buying A House
Although housing prices have increased many times compared to the past time, you can still buy a house if you know how to save money smartly. Owning a dream home is no longer a far-away wish when we know how to make an effective financial plan. Below 8 Effective Money Saving Tips When Buying A House.
1- Make a budget to buy a house
Budgeting is the most important thing for you to know what to do for buying a house. Firstly, you can refer to the current housing prices on the market, find and choose a house in the right price segment.
You should consider houses in areas far from the city center, small houses or apartment complexes, apartments depending on your needs. The average transaction prices of these homes can be easily found online. From there, you can estimate how much money you need to have to own your dream house.
Having a budget to buy a house, you will build a more suitable savings and spending plan. However the house price you find today will be used as a reference value. The budgeting must be calculated higher because in the future, real estate values will increase based on market demand.
This price increase depends on the area you want to buy a house, if you choose a developing area, the price will definitely increase. In other regions, prices will increase more slowly.
2- Make a detailed savings plan
Once you have a general budget, you need to make a detailed savings plan. Each person will build a separate plan, depending on their income level as well as many other factors such as work, spending needs.
When determining the source of fixed income and other income that you will receive in the future, you will know what expenses are necessary, mandatory or may arise such as illness, disease, etc. From there, you will know what to do to have the budgeting money amount.
If the planned budget is a synthetic number, then the savings plan is the small number that adds up to the large budget you need.
3- House buying money saving from your fixed income
In the savings plan, you must determine your fixed income which are salary, bank interest, commissions, income that you will definitely receive in the month/year. After that, you automatically deduct a fixed part to spend on buying a house. This money saving amount for buying house will not be used in any cases or for any purposes.
4- Spend wisely
When implementing the way to save money to buy a house, you need to have a reasonable spending plan. Do not spend money on unnecessary activities and needs. Spending money must be controlled, closely monitored, know how money goes in and out so as not to lose even a small money amount.
To do this, you need to change and adapt to your daily needs. According to the house buying money saving expert, you should divide your actual needs as follows.
- Compulsory needs will be food, accommodation, sleep, rest, study, entertainment...
- The categories can be adjusted such as shopping, travel, spa services, ...
You need to monitor your spending situation and take appropriate adjustments. This will ensure financial security and meet the needs of buying a house in the future.
5- Increase your income
Housing prices tend to increase in the long run, saving enough money to own a house takes at least a few years. You must take measures to increase your income, so the fixed money source for saving to buy a house will increase. This helps you avoid having enough money to buy a house this year, but not in a few years.
Having many income sources helps to shorten the time to save, you will quickly own the house, avoid the situation of the price rising quickly and not buying in time. Besides, diversifying income sources help reduce financial pressure.
6- Set up a reserve money amount
Reserve money amount is often used in unexpected situations such as illness or simply house prices increase too much compared to the existing budget. At this point, you can use part of the reserve money amount to make up.
In life, we can't predict the future. Having a risk reserve money amount, you will not be overwhelmed by fear and anxiety. At this time, the mood is more comfortable, working is also effective, earning more income, being confident and following exactly the plan to save money to buy a house.
7- Tracking income and expenses
Tracking income and expenses is one of the effective ways to save money to buy a house, but often skipped by many people. Tracking income and expenditure helps you accurately determine your money flow in and out. You will not be forgotten or vaguely remember what you have gotten and spent.
When you know what you used money for in that week/month/year, you can adjust it to see if you should change, reduce or increase any amount.
Paying attention and keeping track of your spending is very important. You are doing your own financial management more effectively, so the savings plan to buy a house is also completed more quickly.
8- Stop borrowing money
Borrowing is an activity that puts great pressure on everyone's finances. While you are working on a plan to save money to buy a house, the interest rate causes the fixed amount used for savings to decrease. You are required to deduct part of your income to pay loan interest.
The pressure of interest and principal will affect borrowers’ mind. If you have many income sources and know how to allocate them properly, this pressure will decrease. In case you have limited financial resources, being in debt forces you to choose to pay the debt first, only then you can start saving money to buy a house.
There are many cases which you have an income that is not too high or unstable, having a debt but still want to save to buy a house, this can still be done however the plan will take a lot longer than others. Therefore, you should minimize borrowing money, only borrow money in force majeure case, you should not borrow money for daily expenses or for non-urgent purposes.
8 Money Saving Tips When Buying A House
Top 6 Money Habits of Self-Made Millionaires
Here are Top 6 Money Habits of Self-Made Millionaires that you should know.
Here are Top 6 Money Habits of Self-Made Millionaires that you should know.
Read more
10 Money Rules to face economic recession
Have you ever wondered what your financial situation will be like in a year, even just a few months? In the current context, it is unavoidable to worry about the risk of an economic recession. However, it is important that you start preparing now so that in the event of a recession in the next 6-12 months, you will be in the best position with the money amount you have.
Have you ever wondered what your financial situation will be like in a year, even just a few months? In the current context, it is unavoidable to worry about the risk of an economic recession. However, it is important that you start preparing now so that in the event of a recession in the next 6-12 months, you will be in the best position with the money amount you have.
Read more
7 Billionaire Spending Habits help build Wealth
Fortune magazine published the results of a study showing that up to 54% of billionaires want to continue working at retirement age, and 60% of those with a net worth of more than $15 million don't even have a retire plan.
Fortune magazine published the results of a study showing that up to 54% of billionaires want to continue working at retirement age, and 60% of those with a net worth of more than $15 million don\'t even have a retire plan.
Read more
Most common habits of The World’s 4 Richest groups
Research "Rich Habits" by Tom Corley shows that there are 4 groups of wealthy people, including savers - investors, people who are eager to advance at work, high skilled professionals and the dreamers.
One of the common wealthy habits of the world's richest people is saving and investing their savings.
Research "Rich Habits" by Tom Corley shows that there are 4 groups of wealthy people, including savers - investors, people who are eager to advance at work, high skilled professionals and the dreamers.
One of the common wealthy habits of the world\'s richest people is saving and investing their savings.
Read more
4 Financial mistakes young people often make
The path to financial independence is often not easy. For young people, focusing on retirement or saving for the future is often not a top priority.
But they can lose a lot of money if they make the wrong financial decisions. Here are 4 common financial mistakes that young people often make.
The path to financial independence is often not easy. For young people, focusing on retirement or saving for the future is often not a top priority.
But they can lose a lot of money if they make the wrong financial decisions. Here are 4 common financial mistakes that young people often make.
Read more
4 Things to know when Getting a House Mortgage
A home loan is a suitable option if you need a large sum of money. To manage finances intelligently and avoid falling into a debt spiral, you should pay attention to a safe loan threshold, interest costs to pay, loan term,..
A home loan is a suitable option if you need a large sum of money. To manage finances intelligently and avoid falling into a debt spiral, you should pay attention to a safe loan threshold, interest costs to pay, loan term,..
Read more
4 Investing Tips for Your 20s
There are investments that, as long as you are willing to put in money, time and effort, will definitely bring a worthy return. Here are 4 investments that you should make at the age of 20-30, According to Tim Denning, an Australian blogger.
There are investments that, as long as you are willing to put in money, time and effort, will definitely bring a worthy return. Here are 4 investments that you should make at the age of 20-30, According to Tim Denning, an Australian blogger.
Read more
How to Save Money with Low Income fast: 5 Tips
If you have a low income, you need to make a concentrated effort to save money. While this is not always easy, it can be worthwhile in the long run. To help people with low income to save money, financial experts have shared 5 tips as below.
If you have a low income, you need to make a concentrated effort to save money. While this is not always easy, it can be worthwhile in the long run. To help people with low income to save money, financial experts have shared 5 tips as below.
Read more
4 Personal Financial Management Tips for Gen Z
The unpredictable factors of a volatile life require Gen Z to equip themselves with personal financial management skills as well as develop a flexible plan to avoid struggling with financial problems. Here are 4 personal financial management tips for Gen Z.
The unpredictable factors of a volatile life require Gen Z to equip themselves with personal financial management skills as well as develop a flexible plan to avoid struggling with financial problems. Here are 4 personal financial management tips for Gen Z.
Read more