We all wish to move into the house of our dreams one day, but pinching pennies is never easy. If you want to materialize your dream of becoming the proud owner of your own home, you need to follow life hacks that truly transform the way you manage your expenses. That way you will begin to save money for a house.
Here are 10 saving tips you can practice to make valuable contributions to your home fund.
Create a budget
No matter how much money you make every year, if you don’t know how to save money for a house you will end up living on rent forever. Start the budgeting process by taking a good look at what comes in and goes out of your bank account every month. In case, you have multiple sources of income, don’t forget to incorporate them all in your budgeting strategy.
Differentiate between Needs and Wants
Before you know it, all those little luxuries that you thought you couldn’t live without, escalate to the point where they actually stress you out. Why? Because you continue spending a significant amount of your hard-earned money on things you don’t need but only desire. From buying expensive tech-gadgets to indulging in fine dining or pampering yourself at exotic spas, there are tons of things you can easily cut out from your everyday life to contribute generously to your home fund.
For instance, you might consider canceling your cable TV subscription when you all do is binge-watch Netflix on your phone. You can also spend more on your grocery list than eat out every day.
Stick to Your Budget
While creating a budget to manage your expenses is crucial, practicing it needs patience and persistence. But when you have a realistic budget intact, you will start saving in no time.
Once you’ve canceled everything you’re not using, it becomes easier to allocate more money to your home fund without having to earn more. The key is to keep track of fixed and recurring expenses as well as your car payments and utility bills. It also helps if you set an amount you intend to save for a house, every month, without wreaking havoc on your budget. Here are a few tips to help you manage your household budget for buying a house in future.
Lock Some Money in a Fixed Deposit Account
Setting up a savings account to earn more compound interest on your deposits is always a great idea. Make sure you contribute some amount to this account on a monthly basis to contribute part of your paycheck into your savings account. You may not realize the benefit of this small step until you start reaping its benefits. If you’re someone who likes to tap into his account frequently, then investing money in a fixed deposit account is worth a shot.
Save Money for a House by Saving your Bonus
Vacations can wait when you are saving money for your dream apartment or house. Instead of consuming your annual bonuses, deposit the amount (or at least half of it) to save for a house. You will be amazed to see how conveniently your amount goes up in a few years.
Ditch your Dormant Gym Membership
If you’re someone who subscribed to an expensive gym membership only because your friends were signing up for it, it’s time to cancel it. But we are not, in any way, suggesting that you should not work out. The fact is, most people can do without a gym membership and benefit from free workout apps or go outside for a jog at their local park. Unless, you want to shed some serious pounds, freeze or end your gym membership for a couple of years and enjoy exercising in fresh air.
Take on an Extra Job
We understand that it’s not possible for everyone to keep up with two jobs. But, if you work a typical 9 to 5 job, you can squeeze a couple of hours into your schedule to turn a passion into an additional source of income.
If you like to paint or draw, start selling your artwork online. If you love capturing moments, invest in a photography course to earn as a freelance photographer for the rest of your life. It’s never too late to learn something new. Just brush up on your skills and dust off that old resume to turn your side-gig into a profitable business to save for a house.
Benefit from Technology
If keeping track of your expenses and managing your finances is beyond you, welcome to the world of financial and budgeting tools. There are a plethora of mobile apps (both free and paid) that cover all major aspects of your finances. By putting in some basic info, you can see your income, bills, expenses, and savings in just one place. You may need to check out a few apps before you settle on the best one according to your budgeting needs.
Rent out Your Existing Property
If you live all alone in a big but old house or have a small family that can easily fit into a cozy apartment, it makes little sense to live your whole life in a huge house that doesn’t reflect your style or values.
If you don’t want to sell your house, for now, you can share your existing living space with a tenant or move into a cheaper house to add generous contributions to your home savings account.
Get out of Debt
Although it’s important to save money for a house at some point in your life, it’s equally important to pay off all outstanding debts you already have. A good credit history plays a crucial role when the time comes to borrow a bank loan or purchase a home with credit, not just in Pakistan but all over the world. Make all attempts to pay off your debt on time and avoid skipping or delaying payments to keep yourself out of trouble to save for a house.
Start Saving Today!
Saving money while living in Pakistan, or anywhere in the world, becomes easier when you know that you are saving for a goal. Review your bank statement every year to see how much you’ve saved and keep track of tax and hidden deductions. If you follow the tips we have offered here, you will soon find enough room to boost your monthly savings and speed up your timeline to buy or build your dream house.
Before you start saving money for a house, visit Zameen to get to know about accurate property rates. That way you will know how much you need to save for buying a house.
For more tips on how to save and buy your own house, follow the Zameen Blog, the best property blog online.
