MIDDLE-LOW INCOME EARNERS -How to save money to buy a house

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For most people, one of the most exciting milestones is buying your a home. Buying a new home can be very overwhelming, especially if it's your first one, but it can also be a very long process that may seem like a financial hurdle that requires short-term sacrifices for long-term success. It’s also one of the most stressful. We are here to help. Saving for a house deposit is a big ordeal. It is time consuming, stressful and requires sacrifice. Not every one of these tips will appeal to you. But it is likely that you could use many to these tips together to speed up the time it takes you to save your deposit.
   Once you’ve decided it’s time to buy your own home, saving for the down payment is step one toward doing it. Instead of waiting years, here are 6(six) tips to help you save up for that down payment in a matter of months.

  1.  Explore the market

If you are saving money to buy your dream home, consider taking a detour through a lower-priced neighborhood first. Buying a lower-cost home means you won’t have to save as long for the down payment. As the home’s value goes up, you can use the equity you’ve built to help you get into a higher-priced home later on, particularly if you find a fixer-upper and you’re good at repairs

     2.  Keep your priorities in focus

When you’re trying to save money, flexibility is the key. People save money for key reason, to get the things they want, the things they dream of. Most people want more things than their available budget allows which means a choice has to be made on which dreams to focus on first.
Focus on what you want, when you can get it and how you can get it faster. Understand your saving potential.
Do not save what is left after spending, but spend what is left after saving.

    3.   Set up an automated saving plan

Many people have trouble saving money because they simply see a lot of zeros in their bank account and assume that they are comfortably on track when they are not- or that they have wiggle room to spend. The simplest way to avoid this is to create a dedicated bank account just for your housing fund, and then quarantine it from any spending. You'll still have your regular checking account and debit cards to pay the rent or the cable bill, but that special savings account is off-limits no matter what.
You can create a budget based on your current expenses to determine how much you can save each month. Once you have determined how much you can afford to save, automatically transfer that amount from your current account to a savings account.

    4.  Generate more income



Sometimes cutting your costs just isn’t enough and you need more income. I highly recommend getting a second job or starting some type of side hustle, working more and bringing home more money is also a great way to supercharge your savings. If you are eligible for overtime or additional work, take every opportunity that comes your way. And if you're not, consider taking a second job on the side even if it's only a few days or a few projects each month. To raise money quickly, it pays off to turn your spare time into money-making opportunities. Look around your apartment for unneeded items to sell online or have a yard sale.

   5.    Reduce household expenses


There are many ways to reduce monthly expenses at home that can help build your savings for a down payment more quickly. A successful way to save money is to reduce expenses. There are many ways you can stretch your money and help avoid that "too much money at the end of the month" feeling. For example: Cut down on entertainment, Make the most of your clothes and other fashion accessories rather than buying more unnecessarily. Rediscover and show off old ones "lost" in storage or the back of a closet, and organize your wardrobe. Consider taking your lunch to work instead of buying lunch each day.

  6.  Don't punish yourself

The math of saving for a house may be straightforward, but the emotions of saving are very complex. If saving feels painful or frustrating every single day, you're much less likely to be successful at it. So, rather than let the frustration build up after you deny yourself every discretionary expense, take comfort in a simple pleasure once in a while. Cut down on eating out, but consider cooking a fancy dinner once a week at home with premium ingredients. The idea is to save money, not to spend zero, and you will find it much easier to save if you're actually enjoying your life while doing so.

Saving money to buy a house may take a long process and a lot of discipline, but think of it all as a preparation for homeownership. And if it’s something you really want, you can definitely do it. The important thing is to make the leap and start sacrificing now.

Have you had success saving money to buy a house in the past? Comment and share your experience.

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