In the wake of skyrocketing property charges, investing in a residential property is a big ticket purchase. Though we have alot of home loan alternatives available, you still need to take efforts to save on the down payment to be paid. Your self-discipline commitments and sacrifices will help you have an achievable plan to afford a downpayment.
Here are 10 Tips For Saving Money for Home Down Payment to buy your new home
Open a new savings account
Create a separate savings account exclusively for your down payment. Do not link this savings account with your debit card or payment cheques. Use this savings account solely for the purpose of saving for your down payment.
Every little amount makes a big difference. Decide a certain percentage of all the income flowing in your accounts and transfer it to your savings account.This way it will be easier for you to save up the required amount for your home loan down payments.
Think before you spend
If there are some huge purchases occurring on your end, give yourself some time to think if that particular purchase is really important. Try to make a fair decision as your finances are only in your control. You should learn to spend each and every penny carefully. You don’t have to completely stop spending your money while you’re trying to save some amount for the down payment.
If purchasing a house is your priority, hold your other huge expenses. Put your spending into context, consider purchases in terms of how hard you had to work to pay for them. Your designer clothes or concert tickets can wait. This isn’t worth your income efforts at the end of the day. Do not deviate from your goal as a few little steps will let you achieve your goal.
Pay off your high-interest debts as fast as you can
To save money for a home down payment quickly, pay off your other debts at the earliest. This way you will divert each and every amount of money to your savings to pay off your home down payment and monthly EMIs. Ease your buying procedure of your dream home getting done with any other liabilities to focus on the most valuable investment.
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KeEp a reasonable budget
In this home buying decision with yourself, the entire family has to be equally supportive. Call for a family meeting to discuss everyone’s expenses and note how each one of them can contribute to save enough for the home down payment. This way everyone’s efforts will turn out to be valuable.
Stick to the same efforts until you are able to match up with your home buying goal. Yes, everyone gets to enjoy the perks of the home you’re struggling to buy then why not act as a team to make it a success.
Sell other big ticket items
Yes it happens that there are plenty of valuable items in your household which would fetch you a good amount of money. You might find it a bit difficult to carry out this sale of the things you love but you should make it yourself.
Ask yourself one good reminder each time you feel the burden, “Does owning a home mean more to me than this thing I love?”
You will definitely be able to survive this situation and you will end up saving plenty of cash by decluttering. Make it a win-win situation for yourself!
Do not lose hope and do not worry again and again on the same question, how to save money for a home down payment? It is not an impossible hurdle on your way. You can pass this phase of your life by breaking this process into small achievable yet digestible goals. Let your progress of achieving each small step motivate you enough to gain the strength of making it upto the down payment amount.
Don’t lose sight of your goal, have constant positive reminders on your phone, stick some amazing pictures of your dream home on the vision board. Don’t forget, if something matters you the most, you will be able to move every brick to make it happen successfully.
Make shopping lists
Yes we all go gaga while we enter a shopping mall or some hyperstore. Attractive discounts and sales make us swipe your debit or credits like crazy. But this is not what you should let happen. You have to take a break from your shopping sprees. Avoid falling for those sugar coated conversations made by the storekeepers.
Keep your focus clear on the goal of saving for the home down payment. Beat the system and save the money for your dream goal. Make a list of necessary items you need each month and swear to buy only those necessary items. Be smart while spending on your shopping bills and realistic in achieving your home buying budget. Stick to this plan and you should be able to save up what you need for the down payment.
Try Systematic Investment Plan (SIP)
Home purchase does take a hefty toll on your savings of the aspirational homebuyers. You can avoid this situation by investing in a customisable Systematic Investment Plan (SIP). In this SIP Plan you can invest a fixed amount in a mutual fund scheme on the regular basis. Minimum investment in the mutual fund scheme can benefit you for the purpose of repayment of your EMIs.
Irrespective of the market conditions, you get enough returns when the market is low and less units when the market is high. Investing in mutual funds can effectively take off some burden of the home purchase and significantly reduce your overall cost of investment.
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Pause your Retirement Savings
Hold off on your retirement savings and use those funds by redirecting them towards your down payment. Press pause on the retirement savings and once you pay your down payment amount of the house you want to purchase desperately you can resume with your retirement savings.
Boost Your Income With a Side Hustle
Your side hustle is one of the best ways to turbocharge your income. Think of some amazing ideas while you choose to work some extra hours apart from your regular job. List out things you love or you are already good at which will fetch you good money.