Arguably, saving money for a new home may seem to be a tough
hurdle for anyone, but if you are determined, you can meet your financial goals
worrying easy. Remember, any big purchase needs big savings. But what if you
cannot save a significant amount from your earnings? Can you still manage to
hit your target? Don’t worry- it will eventually add up.
So, what are some of the best saving tips that will turn
your dreams into a reality? Here are
some ideas that might just get you a step closer to getting the Penang properties you have
been eyeing on.
1. Sell your old properties
If you go around your home, you will realize that there are
valuable things just lying there, but you seldom use them. What if you cash
them out? You may find that some old things in your house have appreciated and
they are worth more than you imagined – they could be worth a few bucks!
In a nutshell, old things in your house are hidden sources
of income, and every commodity you sell is one less item you will have to move
when you finally relocate to your new dream home. Whether it is old furniture,
used electronics, accessories or just old clothes, you can get top dollar by
cashing them out. There’re even a coollist of 22 items from 90’s that worth a fortune today!
2. Change the timelines for buying your new home
Turns out, savings for a RM 100,000 down payment in just six
months is difficult than saving for RM 100,000 over two years. Consequently,
you can accomplish your savings objective and still live the best life. So, how
can you figure out what your deadline should be? First, evaluate the amount you
need to save. For instance, if your goal is to save the aforementioned RM 100,000
for a new house, you must make an estimation of the amount of money you are
willing and able to save per month without overstretching your budget.
Nonetheless, you can invest your cash rather than put it in
your savings account, but it is worth noting that investing comes with a risk,
and chances exist that you may lose your money instead of earning lucrative
returns. Therefore, it is recommended to talk to a financial analyst to help
you analyze your investment options.
3. Look at your daily expenses
It goes without saying that the small amounts that we spend
here and there every day may have a drastic impact on your finances in the long
term. Whether it is coffee, afternoon snacks or just hourly drinks, they will
all add up at the end of the day. Daily expenses can cost you something between
RM 25 to RM 50 every day, and do you know what this means?
Therefore, if you breakthe habit of spending on less important things, you will reach your savings
goal faster than you thought. You should be picky with what you spend your
money on and translate that cash to your savings, and there’s no doubt this
will make a difference. You can accomplish this by reviewing your account
statement to help you determine the things you could possibly cut from your
daily spending habits.
Fifteen dollars a week, deposited into a savings account
instead of being spent on luxuries will sum up to thousands of dollars at the
end of the year. Once you get used to this habit, it will become easier to save
large amounts over time.
4. Make direct deposits to your savings account
It is inevitable to spend money when you physically have it,
but if you transfer it to your savings account, you will reduce the chances of
spending it by more than half. One it is in your savings account, it is
possible to pretend that you do not have it.
Instead of putting your entire check into the checking
account, it makes perfect sense to deposit some amount directly into the
savings account to make your saving goal for the down payment more realistic
and achievable. You can even ask your employer whether it is possible to split
your deposit into multiple accounts.
5. Seek assistance
Everyone would agree that first-time homebuyers need a
down-payment assistance for them to make an informed decision. You can also
pursue a homebuyer education course to help you decide on how you will save for
your home down payment. There are also local, state and federal programs that
can offer some invaluable assistance.
Alternatively, family members, relatives, and friends who
have been involved in a saving plan before can prove to be beneficial.
6. Hide your home savings
As you save for your new home, your savings account will
begin to grow, and this is more likely to tempt you to spend the funds on other
things. For instance, you may opt to buy the latest trending car at the expense
of your new home’s down payment. Alternatively, you may be tempted to spend the
funds for a vacation with your family.
Spending the funds on other things will mean that you will
start saving over again and this will make your dreams more difficult or even
impossible. Therefore, it is imperative to stay on track and ignore other
luxuries that may tempt you to withdraw the funds.
Hiding your savings account can play a pivotal role in
making your savings goal more realistic and achievable. As the saying goes,
“out of sight is out of mind. Your bank settings allow you to hide specific
account balances, and you will unhide the account when the right time for
making the down payment comes.
7. Examine your transport budget
Having your own car will definitely give you more freedom,
and it will make life more exciting, but if you want to save up for a
downpayment on a new home, it is inevitable to take an alternative path. Car
ownership entails extra expenses that may be costly at the end of the month.
What if you decide to get to work using public transport at the expense of your
car? Yes, this may look a little bit annoying, but it will help you in your
savings goal in the long term. If you can manage to do this, you can cut down the
expenses considerably and transfer the extra funds to your savings
account. Read this article from RinggitPlus that helps you better
understand whetherto buy a car or a house.
8. Invest in stock exchange market and bonds
There’s no doubt that investing your savings is an excellent
way to take your financial security to a whole new level. It may sound like
staking your funds, but if you are choosy in what you invest in will make your
dreams achievable. Remember, this strategy comes with an inherent risk, but if
you work with a professional financial manager, you should be able to double
your savings over a short period. You can start off small before you can invest
your life savings, but don’t be so overambitious – you must be realistic, and
this will make a significant difference.
Final Verdict
Saving for a home down payment may not be as hard as it
looks or sounds at first. It entirely depends on how you plan for it. Once you
get started, as long as you employ the best strategies, and you remain
realistic to your purpose, you will find it easy than you never thought. The
highlighted tips in this article will help you to reach your saving objective
as quickly as possible. In fact, it will take you less than two years to
accomplish your goals if you stay focused. Try it!
