Save money for a home: the 8 best tips for young people
How saving money to buy a house. The less you spend, the more you can save. This makes you all the more paid if you save on your own home. Because every penny counts here. If you still live with your parents and have relatively little expenses, now is the ideal time to save money for a house or condominium. In the EU, young people today move out with their parents on average at the age of 26. This means that older teenagers and young adults now have the best chances of getting in.
What is the best way to save on a house or apartment?
Despite cheap mortgages: It is not easy to save the recommended equity of 20% for a house or condominium. Real estate prices have been rising for years. This is especially true for the south of Germany and the big cities such as Hamburg, Frankfurt or Berlin. Basically, existing properties are slightly cheaper than new buildings. But in popular locations, they are scarce, How saving money to buy a house as are affordable building plots.
This development is also looming for the coming years. This makes it all the more important that you start saving a house or apartment early. Even if it seems like an unattainable challenge to you at the moment. Fortunately, you can do a lot to make saving easier for you.
Here are our best tips on how to successfully save on home ownership.
1. to pay off debts
Your first goal should be to pay off existing debts as quickly as possible. Only then can you start putting a savings aside. Without debt and negative SCHUFA entry, your creditworthiness also improves and you have the chance of better mortgage conditions.
2. Create a budget plan and control your expenses
If you want to spend less money, you should first know how much money you have available each month and how much you currently spend per month. Create a budget plan in which you enter what income and expenses you have monthly. Nowadays, you have numerous apps at your disposal with which you can organize your household and keep an eye on your income and expenses.
3. Set realistic savings goals
Once you have created a budget plan and now know how much money you earn and spend per month, you can now set realistic savings goals. Don’t forget that you not only save on a deposit for your residential property, but also add expenses for furniture and possible brokerage fees. So set yourself a feasible goal – with a realistic time frame and an affordable mortgage with the shortest possible term.
4. Savings on a standing order
You should find a balance in the amount of savings. On the one hand, you don’t want to save too long on the deposit, on the other hand, you don’t want to overload yourself financially. How saving money to buy a house. The whole thing takes less effort if you put part of your salary aside directly by standing order every month.
5. Talk to a trusted person about your plans
Parents, partner, a good friend: Tell a person you trust about your savings goals. He or she will certainly ask regularly if you are still on track. If you have to be accountable to someone else, no bad habits creep in and you achieve your goals more consistently.
6. Sell things you don’t need
Do you perhaps have something of value that you don’t really need? Then the sale can bring you a nice amount of money. Or you can mix out once and create more storage space at the same time. Whether clothing, books, old furniture or household and electrical appliances. Many things of smaller value can also earn you a nice sum of money.
7. Part-time earnings
On the one hand, you can save money by spending less. Another solution is to earn some money on the side. Whether delivering pizza or a job as a chauffeur – you have many opportunities to increase your income a little.
8. Use funding
If you want to finance a home in Germany, you can fall back on a variety of funding programs. These include Riester funding, construction child benefit, KfW promotional loans, own programs of the federal states and municipalities, conversion funding, promotion of renewable energies and much more. The research is worthwhile!
The most important thing: Don’t plan too much at once
The way to your own property is a marathon, not a sprint. And as with the marathon, it is important to divide your strength. You give up much faster if you set yourself too much and end up losing the fun with it. So don’t work too much. Don’t sell too many things. And don’t save too much now. It is much easier for you to get to your dream home if you set modest goals that you can actually achieve.
