Who on earth doesn’t dream of a beautiful home with family photos hanging on the walls painted in their favorite colors? It’s a valid dream that takes a lot of effort and planning to fulfill. One of the biggest mantras to make it happen is by saving and allowing savings grow. It is not advisable to enter the property market without a strategy. Ensure that your finances are in order and you are ready to proceed. Here are some best tips to save up for a house.
Make Aggressive Savings
The first step to a good plan is to decide on what to give up! Make savings your top priority. Identify the loose-spending areas like regular dinner dates, outings, or too much shopping and divert the same to your savings. The best thing to do is to plan out a budget. It helps understand your non-committed expenses and paves way for prioritization. Eliminate luxuries, after all, “Success requires Sacrifice”.
Decide On The Amount Required For Down Payment
Up to 80% of the total amount required to buy the property would be granted in the form of a home loan. Rest 20% should be paid upfront as the down payment. So one needs to plan so as to accumulate or save the required sum. But, by the time you accumulate, the market price may rise and may consume a lot of time. Hence, one needs a strategy that helps savings grow. Park your savings in the right channels like mutual funds and earn money out of your savings.
Get Your Personalized Financial Planning In Place
Financial planning should be one’s priority. Because your savings for the home deposit or your EMI payments towards home loans should definitely not stop the other financial goals. Neither your kids’ higher education savings nor your retirement savings should suffer.
Save and invest separately for every goal, i.e. plan for goal-oriented investments. The key lies in making the right investment choices like well-diversified mutual fund investments. For more advice from experts, approach an online fiduciary-like ArthaYantra that offers holistic financial planning services. Go with a sure-shot plan. Why take a chance with the most important dream of your life!
