Saving up for an apartment is a great choice for anyone looking to own a property! But to do so, a smart strategy is required.
Defining a goal and choosing your priorities are among the first steps toward realizing your dreams!
Let’s go over everything you need to achieve this goal
How to add money?
It’s important to start by defining a goal you’re working towards. Do you want an apartment? With how many rooms? In what neighborhood? What will the condo look like? Write down your answers and keep that dream in mind.
And to actually earn money, you may need to change some habits and double down on financial planning. With organization and discipline, anything is possible. Along with that, you’ll want to continue this habit, because saving for a single goal won’t get you anywhere.
Do you know what 50-30-20 is? This method is based on dividing your income into 3 parts, making it easier for you to organize your finances.
This way, 50% is marked for paying fixed expenses, 30% for paying variable expenses, and the remaining 20% is for saving and investing. Of course, you’re allowed to adapt the method in a way that works best for your circumstances.
Save money to own an apartment: why own a property?
Saving is the best way to make big dreams come true, but why should you ever choose to buy a property?
If you still pay rent, you may have experienced inconveniences such as moving and even poor tenant management. A property is a durable asset that can offer more quality of life and security, and, for some, it is also a solid investment.
Can you imagine not having to worry about the rent every month?
Of course, it all depends on your goals and lifestyle. Some people prefer to move more often, or like traveling a lot in their free time, obsoleting the idea of owning a home of your own.
1 – Write down expenses and create a budget
Start writing down everything you spend and separate fixed expenses from variable ones. That way, you’ll know where your money is going, and your mistakes and successes when saving money to buy an apartment.
The next step is creating a budget. Define categories (food, transport, leisure) and set a spending limit for each one of them. Of course, at that time you should also set aside an amount that you’ll plan to save that month!
The added value can then be used to finance an apartment. The greater the amount you give, the lower the installments and interest will be.
You should definitely avoid unnecessary spending and impulse consumption. It’s worth making an effort and staying focused instead of spending on something you never needed! This doesn’t mean cutting out all leisure, but setting priorities is essential.
2 – Understand your family’s needs
Your family is the main part of the choosing process, and buying a home can be a major step for many.
Check your family’s possibilities and desires in relation to what the property offers, how the objective can affect the routine, and, finally, the sacrifices that everyone will need to make.
Think hard about the chosen space, how many rooms the new apartment will need, and if the chosen neighborhood meets the main demands related to the school and the market, for example.
3 – Define time and value
A goal must always have a deadline, a value, and a plan for achieving it. The answers will help you organize yourself, for example, understand how much you need to save per month.
How soon do you want to acquire this apartment? How long do you intend to save to buy it? In how many years do you intend to pay off the debt in case of financing?
These definitions of time and value are essential for everything to be organized when saving money to buy an apartment.
4 – Collect money to have an apartment: what are your priorities?
During the time you save money, you won’t have to cut all your trips to eat out, as long as you’re not overspending. The important thing is to set priorities and stay focused.
When a new car comes out or if you’re a tech geek… It’s perfectly normal to shift your attention to these distractions, but it doesn’t mean you’re allowed to give up on the main goal.
But if you really, really want to save money to buy an apartment, which would symbolize years of comfort and security for your family, remember to introduce some discipline in your life.