In recent times, saving up money to buy a house and even giving it a thought can be extremely daunting. Us, being an integral aspect of this advanced civilization moreover, being on a path of a progressive lifestyle it definitely seems a fry cry for one to save as expenses will always be significantly higher, and saving even a penny might consistently seem implausible. Buying a home and living in one is an absolute privilege in one life and it is something many have to strive incredibly hard for. Hence, it takes blood and sweat to build a home.
“Cut to the chase- what is it that one should do?” Well, in simple words, “saving is the key” however, the actual question arises of how to save money?
One should begin with something as basic as cutting down the general expenses and to even reducing the mandatory ones.
All your tempted shopping list and vacations can wait until you will do the same while sitting under the roof of your own house. Not at all going to claim that saving money is a piece of cake but rather one have to grasp a straw to accomplish it. However, particularly families who deal with a variety of competing demands on the family budget face a lot of challenges to amass enough money.
And in today’s exponentially housing market; with prices skyrocketing it almost seem implausible. In addition to that, landing a home is not an easy task, and saving money can feel overwhelmingly challenging.
Preferably you must choose to invest your money in instruments that will generate a higher return than the current inflation. For example, if you are planning to buy a house in the next 7 to 8 years or more you must invest in equity funds rather than debt-based instruments think before buying a home loan, of course, a home loan eases some load off your shoulders, however, you need to plan for the down payment of the house which is again is quite a substantial amount. What usually happens with the home loan is that you can only avail up to 80% of the value of the property, i.e, you need to arrange the remaining 20%
Here’s how you can generate savings:-
1. Create a budget:- You got it right! From mandatory expenses( basic ones are not the exception) to non- mandatory expenses like going shopping and going to restaurants you are required to keep a record and be more vigilant than usual over your day-to-day expenses. Subsequently, you will have a deep insight and smart understanding of your expenses and you can even cut down on your actual expenses to even save more. That’s the key.
2. Set Aside an impromptu expense:- It is apparently said, when you shop some happy hormones are released and you feel better but then there is also some other way to feel happy you can actually cut down these expenses and start dreaming of owning your house one day. That’s pretty much a better idea to feel happy. It is absolutely understood when it comes to this, how hard and implausible situations seem when we are perpetually exposed to irresistible offers, schemes, and discounts. However, in order to gain something you must first learn to lose. You must know that bigger and even better things are ahead of you. There is absolutely no wrong in seeing your pocket first before letting the idea to impress others invade your mind and savings. Always remember, ” it is better to be rich rather than look rich”.
3. Avail of the benefit under the Pradhan Mantri Awas Yojana (PMAY):- The Pradhan Mantri Awas Yojana (PMAY) was launched, to help citizens avail of homes at subsidized rates. And it is also the best option for first-time home buyers.
4. Explore under-construction property:- It sound pretty much attractive to move in already build home however, the more attractive it sound the more expensive it actually is. You may save up to good amount of money if you consider this option.It may prove the best property to buy in terms of saving.
5. Consider a home loan with low interest rate:- Think before buying a home loan before anything else, you must estimate the amount of loan you can comfortably take so that you will not face any complications to pay off your EMIs.
In addition to that, bank with a low interest rate is another important factor. Compare and do your own research.
Since, buying a home is once in a lifetime thing and involves huge amount of financial expenditure. Consequently, a little planning and effort can help you to save lot of money. The key is to start saving as early and as much as possible.