Hey, Millennials! We’re now in 2020. Is saving to buy a house included in your 2020 resolution or haven’t thought about it yet?
Saving for travel, education, or maybe marriage, which is your 2020 resolution is excellent. However, owning a house is something you should consider. Because in 2020, the selling price and the purchase price of housing will rise along with the need for more housing.
Don’t you want to have your place to live in the future? It’s time to save for buying a house. If you feel this is still difficult, here we summarize some accurate tips or ways to protect your money.
1. Determine The Target Residence That You Want
The location of the target residential area will determine how you manage your finances to save your money, at least for the down payment. By identifying the target occupancy, you know very well how much down payment you should prepare.
Don’t randomly choose housing targets: not only the cheap ones but also take a look at how the access and facilities.
The more strategic and crowded, the higher it is the price. Which means more down payment you’ve to prepare. Calculate a down payment of around 30% of the offered housing price and agree on how long you can reach your target.
2. Scrimp, Avoid Unnecessary Expenses
The millennial generation, if you can currently support yourself, work for yourself, then you are also required to save more and avoid unnecessary expenses.
Fasten your spending belt by eliminating everyday tertiary needs. Start focusing on spending on your residence by prioritizing your basic monthly needs.
Then, set aside to save the down payment that you have targeted. Believe that keeping a lifestyle is necessary and very profitable in the future.
3. Set Aside Your Salary Now!
Saving habits that you have learned since childhood are not eroded by increasing needs and desires. Manage your funds properly, and don’t forget to save because saving is absolute; it’s a mandatory thing you have to do.
It’s not difficult if you want discipline in managing savings and have a strategy to maintain savings. After salary, set aside sufficient expenses for basic needs and then set aside also to have a place to live.
You can make this savings deposit at the bank. Usually, there is a term savings system that can make it easier for you. Sooner or later, the money you save will be collected until you can pay for a house that you dreamed of.
4. Do Invest, So That The Exchange Rate Remains The Same
In addition to saving, you can also invest so that the money you save up to a specific time will not decrease. The alternative is to have a deposit program or buy gold bars. Both can provide substantial reciprocity in the form of interest and the difference between selling prices in the present and the future.
The purpose of the investment is to secure the value of money so that you have no trouble and take a long time to collect the down payment funds for housing.
What will you do right now? Saving for the down payment to buy a house is easy enough.
If your income is around four million per month, it is not impossible in the next two or three years you can have your place to live.
Therefore, start saving carefully and discipline. While 2020 is still in its early years, so plan for savings in the future, especially for the current down payments’ residence.
Author: Andre Oentoro is the founder of Breadnbeyond, an award-winning explainer video company. He helps business increase conversion rates, close more sales and get positive ROI from explainer videos (in that order). Twitter: @breadnbeyond Email: andre@breadnbeyond.com LinkedIn: Andre Oentoro
