The thought of investing in your dream home that will be yours for the coming years might sound like music to the ears, but the process of saving money and financial matters can be equally tiring.
Many times you might have found yourself filling up a piggy bank or save money for investing in your dream home or even dedicating a bank account that is specifically for home investment. And as the saying goes, “Planning is good, but planning effectively to get results is even better.”
It is essential to be aware of the cash and other requirements for having savings that can adequately finance this long term goal of investing in your home. The holy grail of achieving this fiscal goal is to start early and plan for the future rather than the present.
Furthermore, if you ask why it is important to save money for your home?
Then, the perfect answer to it would be to understand the fact that, to own a decent house in future you need to have a corpus amount to be able to fund the down payment.
Moreover if you have planned early and also have the time to collect the funds, you will always have financial security. A lot of burden will be taken off your head once monetary issues are sorted out!
The easiest way to save for the down payment is to start saving the right amount of money and with effective ways as well!
Let us now talk about,
How to Save Money For Investing in a House
To many of us saving money sounds like a piece of cake. But how many of you are aware of the productive and fruitful way of saving your money that can come in handy when you need it! And having a piggy bank or a casual savings of 1-2k per month will not be enough.
Having a practical approach and the right start will not only give you a financial backup but will also help you significantly in save money for investing in home.
In this blog, we have compiled a list of 4 common money saving ways, which you should consider. These are the steps I went through while I was saving money for investing in apartments in Jaipur.
Here’s how to start,
1. Start Sooner:
By our late twenties, most of us start planning for the future, and in that future, the most vital asset is a home that solely belongs to you and is bought by the hard-earned money!
Starting to save early is your key to having enough financial resources in the upcoming years, which will be your backbone when you finally are ready to buy a home of your own.
For example, if you are 27 now and you have a plan to invest in a house in the next seven years, then you will be able to save enough in the next 7 years if you start today!
2. Invest in appreciating funds:
To gather a lump sum amount of money in the next 7-10 years, it is wise to invest in various places that will increase the funds in the given amount of time—instruments like fixed deposits, Mutual Funds or Public Provident Funds that will appreciate in the long run.
Generally, Mutual Funds offer higher returns as compared to Public Provident Funds.
3. Systematic investment with SIP’s:
Systematic investment plans are a good option for anyone who is looking to start small and create a corpus over the years, good enough to pay off a down payment of the home. SIP is a way of investing in a mutual fund by regularly paying a fixed amount.
The most attractive part of SIP is that you can start investing with a minimum amount and as low as just 500.
Furthermore, when you invest continuously in the mutual funds irrespective of the market conditions, you tend to get more units when the market is low and fewer units when the demand is high. This significantly reduces your overall cost of investment.
4. Use a high-yielding savings account:
Saving money is undoubtedly the best decision when it comes to saving money for a house. If you plan to keep in the account, which gives a high yielding return, then it’s a win-win.
The normal accounts give meagre returns and interests, while there are specific accounts that provide higher returns.
Buying a home with your hard earned money and savings is considered as the most independent decision to make in later stages of life. In addition to it, backing up the plan of investing in your home with long term savings, appreciating funds and SIP or high yielding accounts will give you the most beneficial returns in future.
Moreover, when you set out to buy a home first time, it is a wise decision to look for an affordable home that is also studded with facilities. Established Real Estate Group understands your concern for a good home and has built luxurious & affordable residential projects that fit the pockets and needs of every individual.
Pro tip: It is better to analyze and study the market before starting to save money for your dream home. Being well aware of the market and legal and financial aspects will help you in preserving the right amount of money you need in the upcoming years.