Saving to buy a house is tough. Not everyone can manage that on a salaried income and without many assets. That said, it’s not entirely impossible to save up for a real estate investment as significant as a house purchase.
Yes, it may take years to get there, but nothing is stopping you from starting early until you’re finally able to hire realty services in Fayetteville and get your own house.
Here are some tips to save for your dream house.
· Open a Savings Account
Opening a bank account no longer requires a physical visit to the bank, and especially not since COVID-19 happened. All you need to do is select a bank of your choice, go to their website, and follow their directions.
Having a savings account for accumulating funds for a new house helps keep your money in one place and earn compound interest on your deposits. You can enjoy a 1.65% or higher APY on your savings and reach your target figure sooner.
Online savings offer more lucrative returns, compared to brick-and-mortar banks doling out a meager 0.01% APY.
So what are you waiting for? Log on to the bank’s website and fill out the form.
·Get Your Assets in Order
Apart from money, you may have other assets in your investment portfolio. This may include precious metal coins and bullions, stocks, bonds, and other equities. When you make a big house purchase, you might need to liquidate other assets to meet the financial requirements.
It’s best to get your assets in order now and make sure they’re a hedge against inflation. Depreciation can be like a leak in the tank: regardless of how much you set aside for your savings, the real value of your funds will keep falling to reduce your purchasing power.
So choose your assets wisely.
·Automate Your Savings
Have you ever had the urge to steal your savings or resist depositing the monthly amount in the savings account? The conscious act of transferring money from your current account to your savings account on payday requires commitment.
You may be tempted to buy a new sound system or take a trip with the deposit money instead, and it may seem like a great idea, but it’s the start of your decline. You won’t realize how quickly your savings can slip through your fingers because you developed an unproductive habit.
Automating your savings protects you from that. A fraction of your salary automatically transfers into the savings account, so you stay on schedule.
· Cut Back on Expenses
This one goes without saying—the more you’re able to reduce your monthly expenses, the better your savings plan will be. This goes for splurging on those little harmless luxuries on special occasions, annual bonuses, or even everyday comforts that cost the green.
If you want the digits to keep adding up your savings account, cut down on your monthly spending. Set a budget for yourself and stick to it religiously.
Phillip Fehler is a real estate broker at Fathom Realty. His real estate industry experience has remained unparalleled and an invaluable resource for residential clients and even military families in Fayetteville and Fort Bragg, North Carolina.