For some individuals, it may be difficult to save money for a house and still pay rent bills. If you are one of them, in this article you are going to learn how to save money for a house while renting.
One easiest way of doing this is to open a separate savings account specifically for this purpose. While you have set up this account choose one of the saving money challenges methods to help you save effectively.
Paying house rent is usually a big responsibility for income earners. The huge amount that usually accumulates yearly or at month’s end poses a burden.
If you weigh the difference you are likely to choose to become a house owner than living on rent. You cannot continue paying rent because this can be money-consuming.
Saving money for a house does not actually specify if you are buying a new home or will like to build it yourself. However, one thing is sure; you are saving for a house in other to stop paying rent bills. Are you determined to save while you are paying rent bills then follow the tips below.
1. Open a separate savings account
You can open a separate savings account where you can always save some portion of your paycheck. Keep this account specifically for the purpose of buying or building a new house.
In some cases, it may still be tempting to hold the account without withdrawal especially if you have limited means of income. In this case, you can adopt two methods:
– If you are buying a new house, you can choose to pay by installment. This means once you saved some amount you pay it out to the seller.
Paying part of the money at different times demands dividing the whole amount into parts like two or three times. Until eventually the whole amount is paid.
– If your choice is to build a new house yourself you can choose to buy the building materials gradually once you save a certain amount. This is to avoid utilizing the savings on some other budget.
2. Move to a cheaper apartment
You might be compelled to move out of your luxury apartment to a low-cost home. This is just one way of saving money for a house while renting. You are not doing this to humiliate yourself after all you are still going to enjoy the benefit.
You are doing it in other to save the extra cash from the low-cost apartment to get your own house. If you add up the proceeds you will be saving hundreds or thousands of dollars each month. Meanwhile, if you relent and keep living in a higher rent you will have a hard time saving for your personal home.
3. Regulate your spending
Another way to save money for a house while renting is to minimize your spending rate, how do you do this? It can be difficult especially if you are not used to economics.
Well in this case you will have to sacrifice but when you have saved enough then you can resume. Think of your groceries, those edibles you do not like eating. Think of preparing your meals, rather than spending a lot eating out.
What about vacations? You can forgo it for now. How about your wardrobe, you can keep using the available ones until you achieve your goal. Look around and observe those less important things you usually spend money on and cut down on them.
4. Find a side hustle
Finding a side hustle simply means starting another means of earnings aside from your main means of revenue. It could be a three or four-hour job. It may still be something you could do while on your primary job.
For instance, there are several side hustle jobs that can fetch you extra cash. You can do freelance jobs, writing online, blogging, babysitting, cleaner, gardening, and a lot of others. Then you can save the extra earnings for your house
5. Start a saving money challenge
You can try out a saving money challenge method using a piggy Bank. This method might seem slow but it is the best if you are finding it difficult to save.
Using this method will help you grow financially because you will develop a saving habit too. You can choose any of the options within the saving money challenge.
I recommend the 52 weeks challenge or the saving goal challenge. Either of these two will help you to save enough to own a personal home.
6. Live with a roommate
Whether you are single or living with your family, you can save if you try to share your rented apartment with someone. For instance, if your rent bill for a two-bedroom is $200, you could discuss with your spouse to get a roommate and split the amount into two.
You will save from the balance. Although you might feel inconvenienced even with the kids around you will not live longer in one room. Once you have saved enough money, then you can get your own house.
7. Avoid getting into debt
Sometimes owing debt may be inevitable especially when the take-home pay is meager. This is usually the reason why most income earners’ salary goes to paying off debt when the pay arrives. If you continue on this path you will not be able to save if are proposing to own a house.
The solution here is to manage your resource properly and avoid getting into debt. However, if you must owe try to pay off immediately. You can pay off immediately if you have other little means of earning; it is better than waiting for your paycheck.
Bottom line
Becoming a house owner has always been the dream of the average individual who is living on rent. One demerit of living on rent is that your house owner may occasionally try to increase your rent bill.
When this occurs you will have no other option than to comply or quit the house. On the contrary, if you plan to build a new house with savings, you may choose another option to get a loan.
When you take a loan and start building then you can offset it gradually with your savings. Although you will have to pay interest if you choose this method.
