How to start saving to buy a house

Written by Posted On Friday, 23 November 2018 00:51

The real estate sector offers this year Black Friday discounts of up to 50% in more than 6,000 homes coinciding with the celebration of Black Friday. It has spread like an oil stain for all the businesses and activities in which a sale transaction occurs. And housing is not an exception. In recent weeks several companies related to the sector have launched campaigns with significant discounts for the purchase of all types of real estate: commercial premises, homes, garages, etc. This offer creates a good opportunity to save money for everyone, and you can save money by buying a house at this opportunity.

Some experts argue that buying a home is something that, seen in detail, is financially unproductive since we spend more money on the purchase than what we could spend if we pay a monthly rent and the rest of the money that would involve that investment we put in a fixed term generating interest.

However, there are other aspects beyond the purely economic ones that have a direct impact on our quality of life and therefore on our productivity and income generation. The dream of the house itself not only responds to investment decisions but has to see issues of the cultural imagination and also with a sense of comfort that allows settling and from there reorganizing the direction of personal finances.

There are many ways in which you can save to fulfill your dream of your own home before you reach 40. But many who seek to buy their first home underestimate the amount of money they will need to purchase that house desired. It will be a long and sometimes tedious road. And it is not just about saving, but learning to be ordered and efficient with our money.

But the sooner we start structuring our economy to reach that goal the closer we will be to achieve it, today we brings some tips to reach that goal:

Get a cheaper apartment or house:

Assuming that someone is living in a house or apartment, considering the option of moving to a smaller one or one in a cheaper neighborhood is something that will allow generating monthly savings. This works particularly well if you are single or live with someone but do not have children.

Better still, it would be that he lives with his parents for a year, of course only if he collaborates with the expenses of the house and with the maintenance of food and extra expenses. Not being responsible for those tasks would be a great lack of responsibility that will only hurt in the future finances when you have to meet those expenses.

Do not spend extraordinary profits:

All extra income, such as a bonus from the company where you work or a tax refund or some other unexpected sum of money, we must save, however much we want to give ourselves a taste. We can invest that money in a safe bond or place it in a fixed term. The idea is not to invest that money at risk to generate greater profits but to go to insurance so that its value does not depreciate and we can reach our goal.

Assume a part-time job:

The effort can be considerable, but the result warrants it. One can get an extra job and put everything that he receives for payment into the savings fund for the house. Of course, the best option would be to be a freelance worker from a job skill that already has. Not only must you look for ways to save, but also ways to earn.

Save on small things:

It does not make sense to reduce expenses in such a way that life becomes a boring and sterile torment but if there are things that one can do without, it would be good to immediately stop spending money on them. The ideal is to set short goals to be able to fulfill them and then if you can renew them. It is much harder to say that one is going to stop drinking 2 cups of coffee with friends or dessert after dinner for a month than to set that goal for a year. That instead of two cups is only one, but not none. The outings with friends after work or any type of recreation is essential, because abandoning that would make our life miserable and the house we longed for would lose all meaning.

Cut out substantial expenses:

Again, remember that this is for a time and not for life. To walk to work instead of in car and then in the same car to the gym to walk on the treadmill is a waste of money both in fuel and in superfluous training centers in this moment of a person's life. Get a cheaper cell phone plan; reduce the benefits of cable service. No one wants to say it out loud, but most people have plenty of places to turn to reduce or eliminate expenses.

Incorporate healthy personal finance habits:

Knowing how much we spend monthly and what we do will allow us to be clear about where we can eliminate unnecessary expenses and, if necessary, reorder our finances. Arming for example an Excel spreadsheet to keep track of our accounting is very convenient. Being a personal form, each one must make it as it is more comfortable, but there must be registered:

---> Income and income of income: Whether income from work in relation to dependence, free-lance, and interest or investment benefits that one has and generates (as we said in point 2) the income must be properly classified and recorded month to month.

---> Expenses: Separated in fixed (the expenses that must be carried out unfailingly every month) and exceptional (those unexpected expenses that are not part of the fixed).

It is likely that we constantly make the usual rethink considering whether obtaining the house is better than our comfort in the short term. The answer is in each one, but no doubt from the moment someone considers the option of buying a house you must set aside some things to reach your goal.

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