The challenge of the acid test for the down payment of my house
Hold on because we are going to present you ‘the step by step’ to succeed with the down payment savings to buy your house. Believe it, it is not as difficult as it sounds.
Get comfortable because we are going to share several tips to get to the top of success, to your goal, to that place that all ‘adults’ want to reach and that is: the precise moment in which you manage to collect all the money for the down payment of YOUR HOUSE (without falling into debt).
We bring you 5 key attitudes that you will have to adapt to your life to meet your goal and not die trying:
1. Many of us come to believe that ‘buying a house’ is an impossible mission, therefore, it is important to detect what are the limiting beliefs that live in your head, this will lead you to take action, overcome fear and improve your habits financially
2. When you feel that you can no longer, think about your ‘me’ in the future and the benefits you will get. Keep your eye on your goal and don’t get distracted.
3. Long-term investing is like waiting for a paint to dry. It takes time and process. Be patient, take it easy, eliminate your money leaks, and maintain a good credit history.
4. From today, define what your income and expenses are. Check what your payment dates will be and the amount of savings you must collect each month. Be organized with your finances and ask yourself: Is my current situation suitable to commit to a mortgage loan of several years?
5. Having a winning mentality will make you aware that buying a property is not an easy task but to forge your own fortune you will have to be persistent and disciplined.
What is a down payment and how is it calculated?
To buy a house or apartment, you will first have to pay the down payment because the amount of the down payment ensures the sale of the property.
Taking into account the approximate amount that you have calculated as the price of the property you are looking for, you can calculate 20% of that amount, so you will know the approximate payment that you will have to cover as a down payment to buy your ideal home.
It must be taken into account that, the higher the amount you pay in the down payment, the lower your monthly payment or the period of time to pay the total price will be. So if it is within your means, collect 30% of the total cost of the property.
Remember that this amount is not covered by the mortgage (although there are institutions that offer you loans to cover this money in case you do not have enough) BUT it is recommended that you achieve this goal alone.
See it this way: If you collect the money from the down payment, you will be ready to take over the payment of the next monthly payments of your mortgage loan.
PHRASE: The Financial Cultural Survey of Young People in Mexico said that 47% of young people have as their main medium-term economic goal to acquire a home.
Here begins the challenge of the litmus test for your hitch
This challenge lasts a full year, everything will depend on how your expenses and income are, are you ready?
First check how much you will have to pay for the down payment of your dream house. For this we recommend reading the article “My house ended up being my best investment.” Once you define that, you will have a clear idea to get to work.
Your ideal home costs: $ ________________
The total cost of the down payment would be: $ ________________
You have $ _________________ to pay (divide it by the number of years your term will last and divide it by 12 to make it monthly)
Now add an interest rate for the exercise (between 7.5% and 15%) (For this, the monthly amount must be multiplied by the rate you selected (.75 = 75%) $ ______________
Create a bank or brokerage account linked to a low-risk investment (such as Cites). In this account you will be depositing month after month the amount of your monthly payment. Remember that this saving has a purpose and it is strictly forbidden to scratch it from there for other parallel treats.
Check how much money you earn monthly and allocate 35% of this amount to saving your down payment. Remember that you must do it punctually on the same day of the month, simulating as if the bank withdraws that amount from your account by direct debit.
Just as in a real debt you can have capital payments, in this challenge, you can pay any extra that you collect such as the Christmas bonus (or as much as you can), the savings account, a possible productivity bonus, profit sharing, extra income and sell the centenary that your grandmother gave you or the heirlooms of your family Hahira notch.
Take into account from now on that this money is already destined for your savings. We tell you this because we already know you and then later you will want to spend it. Resist!
Step # 5:
All the efficiencies that you can make in expenses, go to this saving. For example, eliminate your ant expenses (they are so small that it seems that they do not affect our finances but when doing the sum at the end of the month you will realize that you lost a lot of money); or phantom expenses (make a clean of these expenses that you did not remember that they exist but nothing that a review to a statement of account cannot fix).
Make a list of your unnecessary expenses, eliminate them from your life and dedicate them to this noble cause. Your cause! Saving your next home.
Repeat this: “My monthly spending on ant expenses and phantom expenses is $ _____________ but I promise that all that money will be used for ‘The challenge of the litmus test for the down payment of my house’.
Step # 6:
Remember that everything adds up. Choose a ticket (the one that suits you or you like) and freeze it.
Example: Suppose your fava bill is the $ 50 bill. As of today, you must save all the banknotes that are of that denomination. At the end of the fortnight, you put them all together and deposit them in your savings account for down payment on your house.
Step # 7:
At the end of the year you will have concluded with ‘The challenge of the litmus test for the down payment of your house’. Applause!
Thank yourself and celebrate because each month you managed to collect 35% of your monthly salary or more, which will give you great pleasure to remember that a year ago everything went to things that made you fat, they would have already spoiled, they would have bored you and not something that can generate more money in capital gains and savings in income.
EYE: You may not need to do all this litmus test and you are already financially ready without knowing it. If you think this is your case, review your account statements from the last year and record how much your average savings has been. This will give you a real idea more quickly if you are already there or you may just need to adjust some expenses to arrive at the ideal monthly savings amount for your mortgage loan.