2017 is here and you have decided that your resolution this year is to save for your dream home. You have even shortlisted a few homes in your preferred locations. Now, it’s time to build up your diligently saved money for that down payment. We share with you some secrets on this page.
Look for the big savings
Is that new car absolutely necessary now? Should you buy new dresses for that family wedding in spring? If you can drive another year in your small old car and if you can make do without a vacation one year, those are some big savings that can go towards fattening up your savings account.
Got any refunds or bonuses lately? Remember that while it is tempting to splurge on that large screen TV or a pair of shoes that you fell in love with, restraint is the word. Put them away into your savings account – once you are settled in, you can buy an even larger TV and there will always be more beautiful shoes on sale.
Start a savings account
Every financial planning for a dream home should begin with a monthly savings account that earns interest. Less you spend, the more you save. Be realistic while planning your expenses and stick to the plan. Avail the opportunity for online payment of bills so you can check that off your list of worries. Keep constant tabs on your expenditure to ensure you stay disciplined.
Don’t dip into your savings
Sometimes, looking at all those numbers in our account, we might assume a little expense will not hurt us. Best way to get rid of such temptation is to have a dedicated housing fund. You can use your regular account for paying bills and other expenses.
Rent a smaller home
You may be looking to buy that beautiful 3BHK home but before you do, you don’t have to rent a similar sized home. Living small while saving up for your own home is a smart move.
Cut down the seemingly small expenses
Are there any regular indulgences that can be turned into a once weekly/once monthly treats? Perhaps that tea/coffee break with friends every afternoon? Small expenses can add up big. Cutting down will help save you a considerable amount.
Your TV and phone plans
Do you have the right plans for your TV and mobile phone? You can save a lot of money by understanding the plans available and getting one that is practical for you. Perhaps you can do without the premium channels for now? You can always have these back once you have saved up money and moved into your dream house.
Take advantage of online deals
E-commerce is changing shopping habits. Rather than buying something at the closest place, you can compare products and prices online. Buying it online can save you time and money. Buying it at an online store could even cost you twice as less. Online stores also make it possible to save money by buying used products. If your old furniture must be replaced or you need to buy new gadgets, explore the possibility of buying second-hand ones. You get some good deals online.
Rein in your impulsive habits
Everyone has at least one of these. It could be a smoke or a beer or buying books, clothes, jewellery or gadgets. You will have to find out if you can put aside these habits for some time so that you can add to your savings for your dream home quickly.
Dinner at home
What about dinner? Do you usually just pick up something on your way home? Or eat out regularly? Cooking at home can save a surprising amount. If cooking every evening is a time-consuming hassle, cook on the weekends and save it in the fridge. This way, you can just reheat and eat. It would be more nutritious than eating out and helps you save. Also, share your plan with your friends so they know why you are suddenly refusing to hang out with them. Sometimes, friends are our best enforcers.
Shopping list for the grocery store
This is a rookie move that most people insist on – going into a grocery store without a plan. We end up buying more vegetables and fruits that can be stored and pick up items that just end up lying around in the shelves. Use a shopping list to avoid impulse buys; this can save you money.
You need a game plan to buy your dream home. With a realistic plan in place, you will soon have saved up for that down payment. Being realistic in your planning is crucial. Don’t break your back and don’t deny yourself too much either or you will become discouraged too quickly. The idea is to cut down on expenses; not to put a lid on all expenses. Save money while enjoying your life.
