Tips for Saving to Buy a House

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Tips for Saving to Buy a House

Tips for Saving to Buy a House

TNews - Buying a home is one of the long-term financial goals cherished by many people. However, to achieve this goal, thorough preparation is required, one of which is saving money. Here are some tips for saving to buy a house:

1. Determine the price of the house you want to buy

The first step to take is to determine the price of the house you want to buy. This is crucial in figuring out how much money you need to save.

When you decide to start saving for a house, the first and crucial step is to establish the price range of the house that suits your needs and financial capacity. This forms the basis for your savings plan. To do this, you will need to research the real estate market, examine house prices in your desired area, and consider factors such as size, location, and amenities you want in your home.

Moreover, you also need to decide how long you intend to save before you can purchase the house. This will help you determine the monthly savings amount required to reach your goal. Setting the house price you want to buy is the essential initial step in planning your financial goal of owning a home.

2. Focus on accumulating the down payment

Down payments for homes typically range from 15% to 20% of the house's price. Therefore, it's essential to concentrate on accumulating the down payment first.

After determining the price of the house you wish to buy, the next step is to focus on saving for the down payment (DP). The DP typically ranges from 15% to 20% of the house's price. This is the amount of money you'll need to pay upfront when purchasing a house, and its exact size may depend on the lending institution or bank's policy.

Read more : Avoiding Debt that Drains Your Wallet

To stay committed to your goal of saving for the DP, it's advisable to set up a specific savings account for the DP. You can automate monthly transfers from your salary account to this DP savings account. This approach ensures discipline in your savings and gives you a clear view of how quickly you can reach your DP goal.

3. Determine the monthly mortgage installment within your means

If you decide to buy a house with a Mortgage Loan (KPR), it's essential to calculate a mortgage installment that fits your financial capacity. An overly large mortgage installment can burden your finances.

When you opt for financing your home purchase with a Mortgage Loan (KPR), it is crucial to carefully consider the size of your monthly mortgage installment. You must ensure that the mortgage installment aligns with your financial capabilities.

To determine the appropriate mortgage installment, you need to perform thorough financial calculations. First, calculate your total monthly income and subtract all monthly expenses, including the KPR installment, living costs, and other savings. Ensure that, after paying the KPR installment, you still have enough money to meet your daily needs and address any emergencies. Avoid a situation where the KPR installment strains your finances, impacting your financial well-being.

4. Place your home savings into investment products

To maximize your savings, it's wise to consider placing your home savings into investment products such as time deposits, mutual funds, or gold.

While saving for a house, it's not sufficient to store your money in a regular savings account. You can enhance your earning potential by investing your savings in products that align with your risk profile and financial objectives.

Common investment options to consider when saving for a house include:

Time Deposits

Time deposits are bank products that offer fixed interest rates over a specified period. They generally carry low risk and are suitable for parking money you won't need in the short term.

Mutual Funds

Mutual funds are investment vehicles managed by professional fund managers. You can choose mutual funds that match your investment goals and risk tolerance. They typically offer higher potential returns compared to regular savings accounts.


Investing in gold is a traditional way to protect and grow wealth. Gold prices tend to be stable and can act as a hedge against inflation.

By placing your savings into these investment products, you can potentially accelerate the growth of your funds compared to keeping them in a regular savings account. However, keep in mind that all investments carry some level of risk, and you should fully understand these risks before making investment decisions.

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5. Seek additional sources of income

If your current income is insufficient for saving, consider seeking additional sources of income, such as part-time work, starting a small business, or freelancing.

When saving for a house, you may face challenges if your primary income isn't enough to cover your daily expenses and save for the down payment. In such situations, seeking additional sources of income can be a viable solution.

There are various ways to supplement your income, including:

 Part-Time Work

You can look for part-time jobs or gig work that matches your skills. This may involve activities like ride-sharing, private tutoring, or other part-time positions.

Starting a Small Business

If you have a business idea, starting a small venture can potentially provide additional income. You can sell products or services both online and offline.


If you possess specific skills such as writing, graphic design, or programming, you can work as a freelancer and offer your services to clients. Online platforms like Upwork and Freelancer make it easier to find freelance work.

Supplementing your income can significantly boost your saving capacity and help you achieve your home purchase goal more rapidly. Ensure that any additional income you earn is managed prudently, with a significant portion allocated to your home savings.

Additional Tips for Saving to Buy a House

In addition to the main tips above, here are some supplementary tips that can help you save more effectively for your dream home:

Create a Monthly Budget

Creating a monthly budget will help you track your expenses and ensure that you don't spend more than you earn. A budget allows you to identify areas where you can cut spending and allocate more money to your home savings.

To create an effective budget, record all your expenses, including daily necessities, recurring bills, and leisure activities. Then, determine the amount of money you will allocate to your home savings each month. This way, you'll have a clear financial guideline to follow.

Reduce Unnecessary Expenses

Try to cut down on unnecessary expenses such as dining out, online shopping, or subscriptions that you seldom use. Identifying and minimizing such expenses will allow you to allocate more money to your home savings.

A practical approach is to create a shopping list before going shopping and adhere to it strictly. Additionally, consider reducing your dining out expenses and canceling subscriptions you no longer need.

Save Regularly

Saving money on a regular basis is key to achieving your savings goal faster. Establish a habit of saving every month, even if the amount is small. With consistency, your savings will grow over time.

You can automate transfers from your salary account to your home savings account. This way, you won't need to remember to save each month, as the money will be automatically allocated to your goal.

Be Patient

Buying a home takes time and effort. Therefore, it's essential to be patient and not give up. The process of saving for a house might span several years, depending on the size of your down payment and the house price you desire. However, with discipline and patience, you can achieve your goal.

Avoid rushing to buy a house just for the sake of owning a property quickly. Instead, wait until you have saved enough for the down payment and can comfortably afford the mortgage installment. Patience is the key to ensuring that you select a home that suits your needs and budget.

By implementing the above tips, you can effectively save for your dream home and make your homeownership dream a reality. Keep in mind that buying a house is a long-term investment that requires careful planning and financial commitment. However, with determination and discipline, you can attain this goal. We hope this article provides a useful guide for you in the process of saving to buy a house.

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Tips for Saving to Buy a House