Tips to Save Money for Buying Your First Home
Post by : favouritehomes
Everyone dreams of owning a home someday, of becoming a homeowner and master of all he surveys! But for those planning to buy an apartment in Trivandrum, you need to start saving for your dream home from early on.
Homebuying is a capital-intensive investment and the more capital you can save for it, the larger the downpayment you can make towards buying it. This also translates to having to take a smaller home loan towards buying your home, smaller EMI repayments and shorter repayment tenures! To help you save money more effectively towards buying your first home, here are some useful tips to guide you along:
Set a Goal
Keeping the current rates in mind, calculate how much you would need to save for a downpayment lump sum, along with other closure expenses such as stamp duty and registration charges. Do remember to have a smaller savings corpus on the side, as an emergency fund for the family.
Separate Savings Account
Open a separate savings account for your new home and deposit funds into it on a regular basis. Setting up a dedicated account will ensure that your being vigilant about saving. Any additional bonuses earned can also be used to top up this fund.
You need to create a budget to track your monthly expenses, along with your income. You should be able to identify areas where you can cut down on expenses – these could include renting out a cheaper home or putting off buying a new car till you have compiled a large enough downpayment.
This is easier for salaried people where you can set up an automatic transfer of a fixed fund amount from your salary account to your savings fund, at the beginning of every month. This ensures dedicated saving for your new home.
Whittle Down Luxuries
While trying to save money for your new home, you could consider cutting down on unnecessary expenses such as eating out frequently, going for distant vacations or splurging out on unnecessary luxuries and entertainment.
Increase Your Income
Aside from saving more, you could also consider taking on another part-time job or freelancing to boost your income. This way, you can fulfil your goals earlier!