7 Ways to Save to Buy a House with a Small Salary
Considering buying a house, but still unsure because of your salary? Don't worry, the amount of salary that each person has is relative. When the salary you receive is higher than it is now, your expenses may also increase. Therefore, if you have made up your mind to buy a house, there is no need to feel discouraged.
Saving to buy a house on a small salary is quite a challenging way to gather money, but essentially it is the same as setting aside regular savings. However, it must be intended more strongly because the amount will certainly be larger. Check out saving tips below so that the goal of buying a house can be achieved on time.
1. Implement Strict Financial Management
Like saving to buy other items, financial management must be arranged according to the income you have. Make sure to still meet basic needs frugally. Don't sacrifice basic needs to set aside savings, okay? However, try to make the amount larger than other savings.
2. Consistently Set Aside Savings
If it feels heavy to set aside a large amount of money, maintain the consistency of saving every month. This keeps the savings target for buying a house achievable. It would be better if there is an opportunity to save a larger amount. There's no need to force yourself, but always remember to set aside savings money separately and consistently.
3. Invest in Stable Liquid Assets
For those who often accidentally use their savings, try switching to saving in the form of investments. Now, investing is easier and can be adjusted to your risk profile. Investing in gold assets and money market mutual funds will be relatively more stable or even increase in value. However, cashing out takes a process, unlike using an ATM card from a savings account. So, sudden expenses can be better controlled.
4. Look for Additional Income
Instead of cutting expenses that make you suffer every month, it's better to look for opportunities to earn extra money. Do some simple things like cooking, gardening, or maybe photography services that can be sold in your spare time. Things like this are quite effective for increasing income. So, there will be more money to set aside for buying a house.
5. Set Aside 20 – 30% of Income
Buying a house can indeed be done in installments, but a down payment will make the next steps feel lighter. The recommended amount for house savings is 20 – 30 percent of your income. However, if this figure is too large, it can be adjusted to each person's situation!
6. Adjust to Your Home Buying Capability
The saying "My house, my palace" does not mean you have to buy a house like a palace. A house will still feel like a palace if your life is burden-free. Perhaps one of them is having a debt-free financial situation or simply smooth installments. So, make sure the house you want to buy aligns with your saving capability!
7. Start Saving as Soon as Possible
When is the right time to save for buying a house? There is no ideal time, but the sooner the better. Some people think about buying a house when they are married, while others want to live in an apartment after getting a job. Yes, both still need to be purchased. So, start saving as soon as possible if you have the determination to buy a house.
Come on, there's no need to feel discouraged by the amount of salary to start saving. While looking for your dream house, you can also start saving. Hopefully, your saving target is achieved on time!
Author: Rizkita Darajat
