There is no magic number that tells a prospective home buyer how much he needs to save to get his dream home. There are too many uncertainties out there including personal problems and local circumstances that come into play. Moreover, a prospective buyer needs to consider the expenses for down payment by planning his ‘cash stockpile’ ahead for a massive purchase of his life.
Yes, when you start keeping away money as your savings, you might feel like you are miles away from reaching your goal. Luckily, you are not alone and saving money is not as easy as it seems. Nevertheless, here are simple tricks on how to plan your saving until you reach your ultimate goal.
Excellent tips on how to keep saving money
Pay yourself – you heard us right, if you want to begin saving, start considering it as an expense. Stop paying others and sacrificing your personal goals, but pay yourself just like you would consider any other necessary expense in a month. This ‘force system’ makes your brain to consider yourself as an expense and will not bother you with any self-consciousness. Do not spend all your money and then save with what’s left – THIS DOESN’T WORK! Pay yourself first and then think about the rest.
Know your cause – decide on what you are saving for, because this will help you to choose a place to save. For instance, financial experts do not advise the stock market to put in your savings when you are planning to buy a house. The stock market has its own uncertainties and you might end up losing money that you might have kept as savings. On the other hand, if you choose a bank deposit to keep your savings, you can gain interest rates as well as keep your money untouched.
Start early – You might be still not sure that you want to buy a house, but may have to land somewhere in the future. So, the advice here is – there is no perfect day and opportunity to start saving, but start right now. The amount you might put in your piggy-bag as saving does not matter at all, as long as you have put something in there. Do not think that you need to have a huge amount of money to start as your first saving installment, but start with the small amount because it will make you stress free, yet give you a sense of satisfaction.
Adopt a plan – people generally find it extremely difficult to put keep money aside as savings, considering the amount of expenses they have on their list. It doesn’t matter how much or how little you make, all it takes is a little planning for you to keep some money aside. Make a list of necessary financial obligation and subtract these expenses from your total income. Now you can come to a practical number on how much money you can put into your savings.
We agree, saving is not easy, but unless you do not start trying it’s never going to happen.