Saving for your own home in your 20s

Saving for your own home in your 20s

It might seem like a difficult or even impossible task, but saving up in your 20s and buying a home is one of the wisest decisions you can make. It will give you financial stability for ages by saving on rent, and give you a solid asset even if you do not plan to live there. It is an investment that you will not regret, as it will give you high returns one way or the other, and give you something to fall back on in dire times. It can even set you on the path to earning a significant amount of extra income by getting involved in the home-selling business. After all, prices almost always go higher. So, there are little to no drawbacks in saving up for a home and buy it in your 20s, making you financially savvy and set for life.

Put aside money every month

Whether it’s in an account, a committee, or just your own personal stash, setting aside a certain part of your income is a must for saving up enough to buy your home. Set aside this money in the beginning of the month instead of the end, otherwise you might end up spending a significant chunk of it. If you save this amount in a disciplined way, you might have enough for at least a down payment in just a couple of years. Most people live with their parents in Pakistan, so if that’s the case for you, you won’t be having a significant amount of financial responsibilities, so you can save as much as up to 50% of your income towards buying a home!

Save on commute by carpooling

One of the major costs faced in your 20s is your work commute. Whether you have your own car or use transport services like Uber and Careem, a significant amount of your take-home income is spent on your work commute. You can significantly save on this by starting a carpool system with your colleagues, to the benefit of all. This will reduce your spending on travel and will also be an environmentally-friendly step to take. You’ll be surprised by just how much you tend to save when you carpool. And an added bonus, you won’t have to go through the hassle of finding a good parking spot every day!

Buy an affordable plot on instalments

If you can’t save enough to buy a home of your liking just yet, do not totally skip the property market. Instead, do your research and go for smaller plots in affordable societies with a promising future. Keep a lookout for affordable plots on installments. You can do this by going through our website as well! Once the society gets developed and inhabited, your plot’s price will also go up, letting you sell it and using the amount to buy the home you actually want. In addition, you will have a solid asset in any case, which acts as a huge boost to your financial stability.

Set a fixed budget

Limit your spending now so you can financially prosper later. Once you set aside money, restrict your spending by making a fixed budget for yourself. Of course, this does not mean that you give up on all your luxuries, it just means that you limit them a bit. After all, you can’t live in a Spartan way for too long. Just ensure that you have a fixed budget for your needs and luxuries, and save the rest of your disposable income.

Research mortgage options

In preparation for your future, research your mortgage options now and adjust your spending habits accordingly. Many banks in Pakistan offer home loans with good terms, such as JS Bank, Faysal Bank, and HSBC. You just have to keep your credit score intact to showcase financial stability, so that you can get your home loan easily once you need it. This involves having a credit card which is paid off in time, and not being in debt. Adjust your spending habits accordingly, and you can avail home loans for a stable future.

So, here were a few ways in which you can secure your home-owning dreams by your 20s by saving up wisely. Doing so will be the best decision you make for your financial stability and your future. If you have any more tips to share, do tell us in the comments below. If you want to start a discussion, head over to the Estate 4U Forum.