Who doesn’t want to live in a home that exudes one’s personality and preferences in home décor, how the walls are painted, etc.? However, owning a home and dreaming of it are two separate entities that often seldom meet. One must seek financial advice while doing so because it’s not just a home one is after, it’s also lifelong security. Therefore, if you want to achieve both then I suggest you read some of the tips I offer in this blog.

Saving For Your Future Home

Let’s not build too high a hope of achieving one’s dream home but still aim for the stars. While doing so, one may or may not be successful in getting their dream home. However, buying a home is not impossible if you plan the right way. Here are a few tips:

• Crunch the numbers and check where you stand: Before diving in, understand your current financial landscape. Track your income and expenses for a month. Categorize them into essentials (rent, groceries, utilities) and non-essentials (entertainment, dining out). This approach will help you better identify the groundwork for strategic saving.

• Allocate your budget: Consider the 50/30/20 rule as your budgeting companion. Allocate 50% for needs, 30% for wants, and 20% for savings and debt repayment. When I say ‘needs’ it refers to unavoidable expenses from medical to food. On the other hand, wants refers to dining out, entertainment, buying limited edition watches, etc. You may use a budgeting app designed for the Indian rupee to simplify this process.

• Use an automated approach: Set up a standing instruction to transfer a fixed amount from your salary account to a high-interest savings account every month. This approach will remove the temptation and ensure consistent savings.

• Learn to say NO to yourself: Latte art at Starbucks is tempting, but prioritize your goals. Every “no” to an unnecessary expense translates to a “yes” to buying your future home. Explore free entertainment options, and home-cooked meals, and utilize public transport.

• Find out ways to boost your income: Explore freelance opportunities, monetize hobbies, or take on a side hustle. Every extra rupee adds up and it makes a difference indeed!

Now that you have an idea to save for your future home, let us look at some interesting lifelong saving tips.

Saving For The Future

Don’t live for tomorrow, live for today! Well??? I think you must live tomorrow by saving today. Here’s how you do it:

• Build an emergency fund: Open a separate account and call it your Emergency Account. Start by adding 3 to 6 months of living expenses into the account. Before you begin saving for a house, I recommend you first start with this type of account because you want to be ready for life’s curveballs. This safety net will protect your progress during emergencies.

• Open a PPF Account: A PPF or Public Provident Fund Account offers guaranteed returns and a long lock-in period, perfect for long-term wealth creation.

• Open Mutual Funds and SIP Account: Explore Mutual Funds for long-term growth. Start with a Systematic Investment Plan to invest a fixed amount regularly, averaging out market fluctuations. Remember, consult a financial advisor for personalized investment strategies.

• Invest in a rental property: Invest in a rental property for additional income. However, do this after thorough research and considering the inherent risks.

Remember that financial independence is a marathon and not a sprint. Celebrate the milestones, both big and small. Don’t be afraid to seek guidance from financial advisors or online resources. With proper discipline, planning, and a dash of resourcefulness, you’ll be well on your way to securing your future home and a financially secure future.