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10 Easy Ways To Save For Down Payment

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Posted By Constance Khuzwayo

 

Nowadays, for some people saving can seem like a very difficult task, however, it is a good starting point to be able to save for a down payment to realize a dream such as buying an apartment , paying for a master’s degree, buying a car, among other things. Also, the savings serves as an emergency fund to cover unforeseen expenses such as an accident, illness of a relative, among others. Believe it or not, allocating a part of our income to savings can be a simple task, the key is to find easy ways that fit our spending levels and result. For this, it is important to have a savings plan and order our personal finances. If your dream was always to acquire an apartment, but you do not know how to start saving to achieve it, we will give you some very useful tips to save for a down payment.

  1. Pay All Your Debts First

Putting together the down payment and then paying the mortgage monthly is going to be a huge monster. So you need to get rid of all your previous debts so you can focus on saving and then pay off that big debt that is coming. Currently, banks offer more facilities to get a mortgage loan, however, having debts not only complicate you financially, acquiring another debt, but also decrease your chances of being approved. Let’s say that the bank approves the loan, in the end you would end up paying the debt for your mortgage loan plus your previous debts. We recommend that you do not run, if you do things well you will achieve your goal without having to borrow too much.

  1. Get More Of Yourself

You did the above and you no longer have any debt. Now, we ask that before you start, leave your ego at the door. Fact? All right. This may seem like a somewhat arrogant advice, but it is the truth. If you really want to save you will have to do things that you may not even, right now, consider doing.

Make important sacrifices like stop buying that gadget that you ” need ” so much or maybe be a couple of years without going on vacation beyond visiting family members. Not forgetting that beers with friends or outings to the club for a while will be a thing of the past. It’s time to roll up your sleeves and start putting your finances in order. See what you spend more and where you can cut to the last cent. You have to abandon your preconceived ideas at the door and you do not limit yourself to saying “No, no, that does not work for me” unless you have tried seriously.

  1. Set A Goal

Now that you are determined to save, it is necessary to define exactly what you want to achieve. In this case your goal is to buy your own apartment so you will have to save to pay your initial fee. Therefore, you must know how much the value is and define how much time you will need to save the amount required. This point is very important. If you do not have an established goal and start saving for saving, you will never know how much you need to reach the goal and the process will seem very tedious and you may at some point desist in doing so.

  1. Define The Savings Share

When you receive your biweekly or weekly income, separate the money for the fixed costs of housing, food, health, transportation, among others. With the remaining money, allocate a part for savings. It is important to establish a fixed budget and to be clear about the spending priorities.

  1. Learn And Practice Saving In All Dimensions Of Your Life

While you are going to save large amounts to buy an apartment. You can take this practice to all aspects of your life. You can think that it is foolish to spend time doing something that will only save you a couple of soles but if you do everything you will see how, little by little, the money accumulates and you save more each time. For example, try to walk to work instead of using public transportation. Do not leave electrical appliances on. Change the bulbs to low-energy ones. Find ways of free leisure and fun. At lunchtime do not go to restaurants, but take your food, among other things.

  1. Avoid Watching Movies On Theater

Reduce the consumption of going to theater to watch movies, but maybe subscribe to Netflix instead. The idea is to save money, it is not to spend anything, and you will find it much easier to save if you are actually enjoying your life while doing it.

  1. Avoid Impulse Purchases

This point is related to the second mentioned above, since it is a temptation that you must resist. Imagine this, you are walking down the street and you see that appliance, item of clothing or anything that has caught your attention and you want it, yes or no. That’s where the money saved is in danger. Avoid using that money for other purposes. Although you can say: “I’ll replace it later” you do not know if that will be possible, since in the future you can present unexpected events that prevent you from doing so. In addition, the ideal is for savings to grow, to decrease us. Therefore, we recommend that you be strong and remember that the sacrifice you make now will be worth tomorrow.

  1. Choose The Deposit Account That Best Suits Your Needs

Currently, the financial system offers options to deposit the savings. If you want to save for several months, consider as an option a fixed-term account or mutual funds. If there is a likelihood that you will make withdrawals, it is convenient for you to have a savings account that gives you free availability. The choice is yours.

  1. Save In A Different Account To The One You Use For Your Daily Consumption

In this way, you will have a better control of your expenses and less chance of falling into the temptation of impulse purchases.

  1. Stay Motivated

This advice may be the most important. Saving for a down payment to buy an apartment requires time and sacrifice, so any help is welcome especially psychological. Put the photo of the department that you want to buy in visible places, that serve as a reminder and motivation. You can also use a progress bar that you will cross out or color as you get closer to your goal. Or anything else that you can think of.

Following these simple ways you will be able to save for a down payment. It is not easy but with patience, perseverance and a good roadmap is possible.

 

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2 thoughts on “10 Easy Ways To Save For Down Payment
  1. Bunty Sharma

    Thanks for share

  2. Carina

    Great post! Really enjoyed reading. I have been saving for 3 years now to purchase a property, a lot of what you said I included in my lifestyle. It’s a great way to live- learning to save and sticking to it.

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