Buying a dream home is not an easy task. From arranging money for the down payment to the approval of a home loan to payment of EMIs, each process involves crucial financial decisions due to hefty investments. Although a home loan provides much relief to the homebuyers, you have to save a lot of money for the down payment.
Besides this, you also need money to pay for additional charges involved during the property buying processes like maintenance charges, property tax, registration /stamp duty charges and much more. While arranging money for all these expenses sometimes becomes challenging, it better to start investing in various saving schemes at an early age to avoid any financial hassle in later stages. So, here are some ways to save money for your dream home:
Start with Small Savings
As said, everything starts with small goals. Same is the case with investment. Suppose if you are in your early stages of career and don’t have much to save then you can start with small savings schemes. Start with a smaller amount and jump to more when your salary increases. You can also cut back on the additional expenses to save more from your salary.
Invest in Profitable Instruments
If you dream to purchase a home of 50 lakhs, you need to save 10 lakh for the down payment and additional charges. This corpus of money is not easy to arrange in just one go, so it’s better to start investing in profitable growth schemes like mutual funds, or fixed deposits (FDs), or even Public Provident Funds (PPF), etc. While investing in PPF helps in earning an interest rate of 7-8% annually, a mutual fund offers high returns between 10-18%. At the same time, you can also avail of tax benefits on the same.
Also Read : Tips To Save Tax While Buying A Property
Go for Systematic Investment Plan (SIP)
A systematic investment plan is another investment option through which you can earn good returns after the maturity of the policy. Here, you have to invest a fixed amount monthly, half-yearly or annually and can avail many benefits in the later stages. Mutual funds, equity are some of the popular examples of SIP investment.
Experts suggest that a home-buying procedure involves huge investment, so investing in SIP can help you in generating a good amount for EMI repayment as well as handsome down payment, thereby relieving much pressure.
Save Money in High-Yield Savings Account
Apart from investing in saving schemes, you can also accumulate your funds in a high-yield savings account. This helps in earning a high-interest rate as compared to a regular account, at the same time it is an easier option too.
So, follow these golden tips to save more for your dream home. Moreover, you can also take help from financial consultants and experts who can guide you to achieve the best.