Buying your first home will always be one of the few financial feats you’ll remember all your life. A coveted milestone, it comes with various challenges and warrants a lot of planning. When getting a home loan, having a significant down payment can ease the process of securing the loan, plus it cuts down on the mortgage amount later.

If you’re hoping to buy your first dream home soon, here are five ways you can start saving up for a down payment:

• Plan Plan Plan

Time is of the essence when it comes to saving for a property. Plan to start saving before you begin to look at homes. Also, set a clear goal of the amount you need plus a timeline to achieve it. Planning can also include inquiring with banks and other lenders to get a better idea of loan options.

• Start a Dedicated Savings Account

Yes, if you’re preparing to buy your first home, opening a new savings account solely for this purpose is a good idea. This will keep your funds safe from everyday spending temptations while earning interest over time. It will also motivate you to keep putting money aside regularly.

• Take Up a Side Hustle

Any amount of earning feels inadequate when you’re racing against time to secure a down payment. Consider bolstering your income with a side hustle, additional projects, tutoring, or selling unused items online. Focus on something you would like doing so it doesn’t become a physical or mental strain while also creating additional income.

• Reduce High-Interest Debt

If you have any outstanding debts, focus on paying them off first. Reducing debt improves your credit score and frees up money for saving.

• Seek Financial Assistance

It’s okay to ask for assistance when you’re saving for a big purchase like a down payment on a house. Identify a financial planner or a financial portfolio strategist early on who could advise you on investment options to better meet your goals. 

Saving for a down payment requires commitment and patience. It’s not an easy journey, but one totally worth embarking on, especially when the destination is securing a place you can call your very first home.

ALSO READ:

Master Your Financial Game: Chess-Inspired Strategies For Investment Success

Disclaimer: The article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of The South Indian Bank Ltd. or its employees. The South Indian Bank Ltd and/or the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial/non-financial decisions based on the contents and information’s in the blog article. Please consult your financial advisor or the respective field expert before making any decisions.