Is your resolution this year is to buy a first home? Congratulations! You’d have to estimate how costs will be budgeted to buy the house. Now is the time to step into an important first stage.
The first stage is important after weighing and deciding to buy a home is set aside for payment (down payment / DP) your first home.
This stage is very important because it can affect your financial situation in the future. Here are some tips that you can do to reach your target this year.
Determine the target
Number of DP a house usually is around 20 per cent of the price of the house (this is not plus other costs such as the cost administration or insurance).
There are also some developers that gave leeway as DP which can be paid in installments or sign so that the value is smaller than that. Please note terms and conditions apply, when you have determined how many targets that must be collected, the savings would be much easier.
Lower the cost of current residence
Perhaps you live in an apartment or house with rental fees are expensive. In order to prepare for the DP fund your first home, do not hesitate to move temporarily to a residence with the cost of rent is cheaper.
Although less convenient, but it never hurts to stew before having fun in the future.
Cut some spending
If you are serious in collecting a large amount of money for the DP home. Then you need to increase the amount of revenue or cut some expenditures were deemed not mandatory spending.
Although it was burdensome, but you will become more creative in spending a pleasant time without having to spend money.
Create a separate account
If possible, separate savings account for DP home to account for daily expenses. Discipline yourself that the money in the account may not be used for anything other than home affairs. Better yet, if you have an emergency stash in a different account.
Create instruction auto debit
If you already know the amount of money that must be collected, you can also figure out how much money should be saved every month. To make things easier, you can create instruction auto debit amount of money into another account when payday arrives.
Save money shock
If you suddenly get unexpected money as bonuses, refund of taxes, gifts, etc. Move to a special account deposit DP fund your home. Things like this can speed you hit the target.
Keep these funds in a liquid
If you are planning to buy a house in less than five years, invest your money in a liquid and less risky as savings, time deposits, money market or fixed income if you choose a mutual fund.
Stay Focused and patient
Are you sure you can do it! Do not remove your eyes from the target before they are realized. Stay focused and be patient. To be more excited, print pictures of your dream house and make a graph on a computer that illustrate the development of your money from month to month. At the end of the trip you will be surprised when it reaches the target.
Remember, your ultimate goal is to have his own house. You may occasionally celebrate if some funds have been collected, or your trip in collecting funds slightly longer be achieved. Do not let stress get you in the middle of the road and decided to give up