Purchasing a home is one of the largest investments a person can make throughout his/her life. Without a doubt, it is a good investment since we can make a profit in the future. Of course, since it is a large amount of money, we must be aware of the savings that we have to make to be able to realize it. But how can we save to achieve what is required of us – a down payment and a mortgage loan? We’ll give you some tricks.
The tips you need to save up and buy a home
What you need to know to buy it
- The first thing you should know is the price of the property you want to buy. It does not have to be a specific property but you must be clear how much you are willing to pay to continue with the following calculations.
- The second thing you have to do is save 10% of the price of the property for tax and administrative expenses.
- The third thing is that you will also have to save for the down payment. Mortgages usually grant 80% loans so for the down payment you will have to save 20% of the property’s value.
- And finally you will have to make a savings plan to figure out how soon you can buy this home.
Tricks to save money in everyday life
Once the calculations have been made and knowing how much you need to save to buy your home in the timeframe you set, it’s time to get down to business. We give you some tips to make it easier for you.
- Set your goals: Be clear about what you want to save each month and meet your goals. Be consistent and don’t indulge in unnecessary whims.
- Pay off your debts: Debts are the enemy of savings. If you have debts, the first thing you have to do is reduce them.
- Create a bank account for your savings: If you are one of those who cannot avoid spending if you see money on your card, why not open an exclusive account to buy your home? Talk to your bank so that every month they transfer a percentage of your salary to that account so that you cannot spend it.
- Analyze your expenses: You don’t know where the money is going? That is, you have no control over it. Write down each expense you make throughout the month and analyze where the money goes the most and study how you can save.
- Save energy: Another way to save money is by spending less energy at home by taking advantage of natural light or using LED bulbs, for example. Without a doubt, a good way to fatten your account while being also responsible for the environment.
- Look for a second source of income: If your time allows, find a way to get a bonus to save up faster.