One of the most exciting questions for newlyweds is buying an apartment. However, not everyone has the opportunity to go and buy it for cash. Lack of cash, lack of stable work, further aggravate the housing problem. One thing remains: to ask about how to save money for an apartment. This will be written in this article.
End justifies the means
Asking themselves the question of how to save money, the young couple have already taken the first step. It remains to choose for yourself the most suitable option according to your capabilities.
Consider the most common accumulation methods. You can save money for a few years under the mattress and every day more and more hope for the speedy purchase of the coveted housing. However, in the modern world this is far from the best option. Previously, our grandparents did this, and after 20-30 years they received the coveted apartment. Now inflation will put everything in its place, and nothing will remain of a good half of savings.
And even if you manage to save up for a one-room apartment, then most likely there will be children by this time, and a new question will arise about how to save money for a larger apartment.
Another option is state programs for young families, offering to purchase housing at lower interest rates, but with the condition of deposit accumulation over several years. This is a great chance and answer to the question of how to save money for their own housing, but not all families fall under such programs. Usually they are designed for families with children, or for military personnel.
Budget planning
The most correct in this situation will be the decision to calm down and together draw up a family budget. It includes income, expenses for the month, as well as the cost of future housing and the planned period for its acquisition. Depending on the level of income, it is necessary to allocate the free part of the funds that will need to be postponed monthly.
Now on the Internet there are many calculators that calculate the family budget. Having picked up the suitable one, it will be necessary to accurately record all income and expenses (food, clothing, etc.) into it. With its help, it will be better to see where the money goes, as well as where you can save. You can simply start a notebook where monthly income and embezzlement will be recorded. It is also worthwhile to have a special envelope, where free funds will be saved.
Principles of accumulation
There are long-term and short-term goals. If the question is how to quickly accumulate money, then short-term principles of accumulation should be considered. They include:
- Austerity of incoming finances due to cost reduction.
- Increase in earnings for faster accumulation of the required amount of money.
- Investments in highly liquid financial instruments.
The principles of long-term accumulation, for example, if the question arose about how to save money for a child, includes:
- Investment.
- Opening a deposit account.
- Purchase of real estate in a mortgage with its subsequent lease.
- Cost savings.
Save or not
The first thing that financial planners advise is to correctly distribute their income. Accordingly, in order to manage to accumulate the required amount, it is required to reduce or redistribute your expenses. This is especially true for women who can spend half their wages on shopping with friends, and then all month be indignant that there is nothing to wear, and there is no money either.Therefore, if you have something to wear, then the wardrobe does not have to be replenished every month. Otherwise, it will never work to accumulate without involving additional financial resources.
The same goes for products. It does not say not to eat up, but various excesses (for example, red fish or caviar at a regular dinner) are not worth buying. It is also better to purchase products as needed, and not to buy them for future use, so as not to throw out spoiled ones later.
Thus, we can conclude that saving money is more likely to achieve the goal and help answer the question of how to save money.
Long term investment
Of course, buying an apartment concerns not only the newlyweds, but also other segments of the population who want to invest their money profitably. Real estate investing is one of the most reliable and highly liquid types of investment. Therefore, if there is another housing, you can buy a new mortgage and rent it out. In a few years, the investment will pay off and will be profitable.
Other types of long-term investment using accumulation include mutual investment funds, the Forex market, the purchase of shares and bank deposits.
However, one should know that all these are high-risk tools, and without proper experience and knowledge you can be left without money at all. If you really want to make money as quickly as possible without large investments, then in the financial market there are many good companies to which you can trust your contributions.
Bank deposits
One of the most common options in the world, closer to the goal and answer the question of how to save a lot of money, is to open a bank savings deposit. This type of accumulation of money is safer and more reliable. Often, if a significant amount of money is accumulated at home, there is a temptation to spend it. With a bank deposit, this will not work, because for the early withdrawal of funds from the account, the accumulated interest is usually withdrawn.
The average yield on deposits is 12% per year, which not only saves money, but also accumulates it. It is most convenient to open such accounts where there is a monthly replenishment service. So, having received a salary, you should immediately put some part (usually it is 10%) into your bank account.
In search of an answer to the question of how to quickly save money, you can open 2 accounts in different banks. And best of all, if both spouses do this, dreaming of buying their apartment as soon as possible.
All the best for children
Parents can even start saving for their child’s apartment, right after his birth. Having opened a special accumulative deposit, you will need to replenish it with a certain amount each month (each determines it individually). After 18-20 years, significant capital will accumulate, on which it will be possible to purchase new housing for your child.
Another most common option for buying a home for your child is to buy an apartment on a mortgage. This method allows you to achieve the goal and answer the question of how you can save money without denying yourself anything. The only condition here will be the impossibility of living yourself and the need to rent an apartment. Monthly rental payments will repay the mortgage loan, and by the age of majority or marriage of the child, the mortgage debt will be repaid completely.
Simple rules
As can be seen from the above, there is nothing complicated in understanding how to save money. You need to follow only simple rules leading to the fulfillment of a cherished dream:
- make a family budget plan;
- learn to prioritize purchases;
- learn to save;
- determine the housing, its price, area and approximate location;
- save at least 10% of the total income monthly;
- sometimes it’s better to buy property in advance, for example for children.
There are unexpected incomes in the family budget (for example, a cash gift or a bonus) that are better not to spend, but to postpone to the accumulated funds.
Useful Tips
In the end, I would like to give a few more tips that can come closer to the goal.
When going to the store, you should take with you exactly as much money as the planned purchases cost. This method helps to avoid unnecessary expenses, thereby helping to save.
Another trick that contributes to the accumulation of capital is to make a list of necessary things. Going to the store with such a list, you increase the chance to buy exactly what you need.
Not only adults dream of new things and apartments, but also children and adolescents. How to save money for a teenager, for example, on a computer? Everything here is a little more complicated than in adults. The lack of work, and sometimes the difficult financial situation of the family, makes many abandon their dreams. But not all. You can find several ways to earn money. Often for students and schoolchildren they offer various types of part-time jobs, with which you can get 250-300 rubles a day. So, working in the summer, you can perfectly combine rest and part-time work. And after the holidays, get a new computer.
Do not forget about the psychological mood. If every day you imagine that a new thing or apartment is already there, then without a doubt it will appear even faster. After all, even scientifically proven that the power of thought can do real miracles!