Most people are so caught up with their short-term goals that they forget about the bigger picture. Do you find yourself saving money to buy the upcoming iPhone or other gadgets? Or how about, saving up this month’s salary so you could buy a very nice bag or shoes next month? Most of the times, it’s always about short-term goals. How about saving up money so you have money for a down payment for a house? It is time to also think about the future.
In this article, we will give you tips to save money for long term goals like buying a house. To be able to be qualified for a home loan, whether fixed rate home loans or variable rate home loans, you must have money for down payment and of course, enough savings for lenders to know that you are eligible to pay.
It is time that you look into your spending and saving habits to get closer to your dream of owning a house. Here are some tips to consider:
- List down all your expenses –do you know where your money is going or do you find yourself surprised every month that all your money is gonealmost before the next payday arrives? Well, this is exactly why many people find it difficult to save money. They spend without any plan or direction. They spend their money as long as they have it. Well, it is time to change this habit. It is best to list down all your expenses from rent, credit card bills, phone bills, food, shopping, up to the smallest detail. This is good so you know where you are spending your money and if there’s a way to remove some items from the lists.
- Come up with weekly and monthly budget –once you’ve identified all your expenses, it is time to create weekly or monthly budget. You should come up with a reasonable budget plan and then do your best to follow it. Make sure that your expenses are a lot lesser compared to your income so you still have money to save.
- Have a separate savings account –it is advisable to have a separate savings account for your bigger goals. Then be sure to put specific percentage of your income to this account every month. Treat this as your obligation so you get closer to your goal of buying a house.
- Plan your shopping –it is time to avoid impulsive shopping and instead make sure that your trips to the malls are always planned including the budget. This teaches you to become more responsible in spending your money. You can still buy things that you like but make sure to plan it so you can save money for it without hurting your savings.
- Avoid use of credit card –lastly, it is best that you avoid using credit cards and instead, settle for paying cash for your purchases. Credit cards are temptations – they make you believe that you can buy things that you don’t actually afford. And the ending is usually bad – you crying over debts for your purchases.
It is fun to buy new clothes, shoes, bags and gadgets but it is so much more fulfilling to be able to achieve big goals in life like a house. Thus, it is best if you start saving money for real.