In Malaysia, house prices have been on a steady rise in recent years, making it more and more of a challenge for buyers to find the right property for their needs and budget. Because of this, many see buying a house as nothing more than a distant dream. But there are things you can do to ease the process of setting aside funds for that dream home. Find out what you can do today to start saving for your house, and achieve that ultimate goal by following these 6 smart tips.
- Open A Separate Account – How many bank accounts do you have? Many choose to have just one or two accounts to hold all their money, but that could work against you if you’re trying to save for a home. Having a separate account for your housing fund can make it easier for you to establish just how far along you are in terms of saving for your house. This also helps to guarantee that you won’t spend any of the fund on other things you might want to purchase. Open a new bank account and funnel a chunk of your monthly salary into it, as a way to set aside funds for your home.
- Scratch Out The Luxuries – You might like to indulge in an expensive dinner every week or so, or maybe you’re the kind of person who likes going on regular shopping sprees. Whatever it might be, consider slicing out a luxury from your monthly expense and set aside that money for your house instead. If you can’t cut the expense out completely, consider making it less frequent, for example to just once a month, to help reduce the cost.
- Look Into Loans – Unless you plan to save enough to pay off your house in full (which could take several long years), it’s likely that you plan to take out a loan from a bank to help finance your home. As early as now, you should try to learn how to apply for housing loan in Malaysia, so you can get a better idea of what you should prepare on the day itself. You can also look into the different loans and payment schemes offered, to better understand how you can pay off your loan when you finally decide to take one out.
- Automate Your Savings – From your salary account, automate your savings, so you won’t have to worry about whether or not you were able to transfer the amount of your home savings every month. Go online and schedule a monthly credit to your housing fund from your salary, so you can be sure that whatever is left behind in your account after every payday is money that you can spend.
- Set Unexpected Money Aside – If you get a bonus, if your parents decide to give you a little extra for your birthday, or if you win any sort of amount of money, be sure to set it aside 100%. While it might seem like a giant struggle, especially if there’s something new you want to purchase, this will help bump up your savings big time, bringing you closer to your goal sooner rather than later.
- Stay Calm – Probably the most forgotten tip when saving for anything is staying calm. You might have a time table worked out in your head, but remember that any plans you might have established won’t always work out the same way in real life. Keep your cool and don’t punish yourself if monthly savings quotas aren’t met. The less you stress out about missing short term goals, the more motivated you’ll be in the long run.
Saving for a home is no easy task, but with the right practices and mind set, you can buy that dream home in no time. Don’t forget to keep these tips in mind when you decide you’re ready to start saving, and work your way towards realizing that property goal soon.