If one of your resolutions is to own your home, now is the time to make a plan to start saving. Although, in general, you do not need to put a 20 percent entry, you will need some savings. Keep in mind that a large amount like money that will save you money in the long run.
It is very possible that at some point in your life you ask how to save to buy an apartment, either to become independent or to share with the family. However, embarking on that decision is a process that requires time and planning as you save for a down payment on your first home in one of the main obstacles for buyers.
The first thing is to be clear about how much money you have to put together to pay the foot and other associated expenses in order to clearly determine your purchasing power. As a rule, saving to acquire a new apartment means accumulating a significant amount of savings, so here we share five simple tips to help you do just that:
Here are some tips if you really intend to save.
Create a monthly budget
The first advice, however basic, is that you spend less than you earn. Therefore, any financial goal you have should start and end with a monthly budget. It is important to be honest and realistic about spending habits from the beginning and then keep the plan as much as possible.
Make a plan
You must first have a financial goal. Make an estimate of how much you can afford to pay monthly in mortgage (calculators that are online can help you). The rule is that no more than 28 percent of your salary (before taxes) should be dedicated to housing, which includes mortgage, taxes and insurance. Once you know how much you can spend in a house, check with a lender to decide the entry money that best suits you.
Paying credit cards in full will not only save you money at high interest rates, it will also help you qualify for a good loan.
To make sure that the funds directed to your home grow, open a savings account just for this. Then, divert a portion of your check to that account automatically. The separate account will reduce the temptation to use this money for other things. To make this account grow faster, also deposit the ones that return you from taxes in it.
Even if it’s little, count. If you usually buy a coffee on the way to the office, start by doing it at home and take it in a thermos. Each week save that money you would have spent in that morning coffee or in some afternoon candy. Check all your expenses, from the exit to restaurants and cinemas to the cable, the cell phone plans and the membership of the gym. Many of these expenses can be eliminated or reduced. And do not forget to re think what the holidays cost. Go camping or make a ‘staycation’ and save the difference in your savings account.
If you are renting an apartment, analyze if you can get a smaller one to save on rent. The apartment will not seem so bad if you think about your goal. According to USA Today, moving from a two-bedroom apartment to a one-bedroom apartment can save you from 20 to 30 percent rent. If you cannot do it because of a contract, think about whether it is worth getting a “roommate”, that you pay part of that rent.
This may be the least popular measure but one of the most effective. Spending less is the obvious way to save, but working more and bringing more money home is also an excellent way to boost these savings. Doing overtime or additional jobs are opportunities that when they are presented, they must be seized. You can also consider taking a second job or even some freelance projects every month.
Ask for support
Like a diet, following a strict savings plan is much easier with the support of the people around you. If your friends always invite you to go out to eat or go shopping every weekend, temptation and stress will be a problem. Make sure your friends and family know how your financial behavior is changing so they can help you meet your goal.
Do not punish yourself
Doing the calculation to save can be a simple thing, but sometimes the emotions are complex and they play tricks on us. For example, if saving generates frustration or stress every time you spend money, you are much less likely to succeed.
So, instead of allowing frustration to accumulate, it is advisable to reduce or replace your expenses instead of avoiding them altogether. For example, if you regularly go out to eat out, decrease the number of monthly outings or better yet prepare a special dinner from time to time in your own home and still enjoy what you like without completely depriving you.
The idea is to save money, not spend zero. It will be much easier if you are really enjoying your life while doing it. With determination you can save up to 10 percent of your annual salary. Have a photo or an advertisement of your dream house and stick it in the fridge. It will keep you focused on your resolution.