Not a lot of Pinoys have money locked up in a safe or saved in the bank. More often than not, most of them use their salaries to pay for electricity, water, and other bills. In fact, research shows that there are more people searching for properties for rent than for sale because they don’t have enough money to buy their own property.
Here are some tips that you can follow to get you started with saving for your new home.
1. Save money in a bank
This is the most obvious way of starting your savings. Though it sounds really simple, not a lot of people do it. They might start saving, but eventually withdraw the money soon after. If you are really serious in home-buying, practice discipline to make sure you won’t use what you’ve saved. An easier way to save is to have the bank deduct the amount automatically from your paycheck. Who knows? Maybe you can save enough money for a car to go with your house.
2. Hide your credit card
It’s a really hard habit to break, but you need to stay away from the temptation of spending using your credit card. It will be really hard for the first couple of weeks but you’ll get used to it. When you use a credit card, you often end up buying things that you don’t need. Training yourself to stay away from unnecessary spending will make sure you stay in control of your spending.
3. Sell your old stuff
Filipinos tend to hold on to things they once love or think that they might still use. If you have old stuff lying around, you might want to sell them. As little and few as these things might be, they can give you a boost in your savings in the end. You might find it hard to part with your more sentimental items, but remember that the money you get will go to a greater cause.
4. Move back in (temporarily) with your parents
If you are already living with your mom and dad then you can easily start your savings. But if you have been away from quite some time, ask your parents if they’ll let you live with them for a while. Doing so will let you save money that would’ve gone to your apartment’s rent, utility bills and more. But keep in mind that you still to move out eventually.
5. Reduce your living expenses
Reducing your expenses should be a no-brainer, but it’s not something everyone practices. Start with the little things: for example, giving up your regular cup of Starbucks coffee and buying a cheaper alternative will save you a lot of money in the long run.
You can invest your extra money to one of the most trusted insurers in the country. You can talk to one of the financial advisors to know how much can you allot and your payment method. This way, little by little your money is working for you. It’s also wise to get into investing than banking because of the so called inflation. Inflation is the general increase of prices and fall in purchasing value of money.
No one can get rich overnight, but if you follow these tips regularly, you’ll have enough money for your future dream home soon enough.