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9 Ways to Bring your Dream House to Reality

how to save money for a house

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It’s a dream that all the couples have and indeed I along with my husband have been planning for the same since long.

Well, family planning and planning to buy a house are two such major areas which require a lot of attention and proper decision making.

It was the time after we had kids when my daughter was 4 years old and son was still a toddler that we decided to settle down in our own home for good.

Both of us have a steady job so we have no plans of making a move to any other city and hence our search began.

To plan a dream house and actually buy one are 2 completely different things, as we prefer having a porch, a huge tree for a swing, white picket fence and garden at front and backyard as well.

But it is our pocket size that might not support us to bring this dream to reality and the situation we had 3 years ago made us realize that we might just be able to afford a loft room and that too after taking financial aid.

Yes, it took us 3 years to finally be able to settle down in almost our dream scenario kinda home and here I’m making sure that you achieve yours within a few months.

All you need to do now is give a thorough read to this article and follow all the mentioned points in the same.

1. Know your Financial Condition

If you’re taking a loan to buy your dream house then you need to consider its term. If your kid is small and the loan is for 10 years then it might not be a problem,

But any duration longer than this might put a load on your pocket as by that time your kid might be ready to go to a college.

So, being fully aware of your financial condition and planning to buy a home accordingly is of utmost importance and these things will help you answer about How to Save Money for a house.

Hence, below mentioned are the points that you need to take care of:

Debt (if any)

Taking a new debt on your head when your previous one is not paid for is NEVER a good decision.

You need to make sure that you’ve paid everything that you owe to someone else, be it a friend, family member or bank and then only think of making such a huge investment which is buying a house.

So, if you have any previous debt then please go through this article and make sure that you sort out your finances within a year, otherwise read on.

Loan (if any)

Any loan payment which needs to be paid off within a year or two can be easily managed with a house loan.

But if you have a personal loan that will last longer than a duration of 2 years then this is a red sigh for you and you need to stop and plan on how you will be paying for 2 loans with your paycheck.

It was easy for my husband and I to take 2 loans at a time because we both are earning members of our family and if it is the same with you then go on.

Don’t worry and buy your dream home and for any personal suggestions please drop in your questions in the comment section at the bottom of this article.

Monthly budget and requirements

Electricity, water, all groceries, vehicle fuel and maintenance, party each and everything is included under this head.

If it is just the 2 of you in your family right now i.e. a couple then you need to take out the yellow pad and write down all of your expenses on the home front.

Then the next step will be to identify all those expenses which can be deducted from your lifestyle and save money for your house.

Child Care

With 2 kids it is easy to plan a financially stable future for an average income salary but any more than that might need strong planning from your end to keep your financial future secure.

So, after you complete your family planning the next step that you need to take is about keeping your kids needs to be fulfilled, which will include tuition fee, living expenses and such.

Looking at the previous points you need to make sure to keep 20% of your paycheck saved away for your kids.

To know further about how you can make your kids future financially stable, please go through this read.

2. Plan according to Family Size

Now that you know your financial condition, the next step is to go out there talk to a broker and look at various houses which are up for sale.

And now you need to decide what will be your house size according to the number of members in your family.

Single Family Home

It is ideal for a couple with 2 kids to buy a 2-bedroom or 3-bedroom house which comes along with a great backyard.

Multi-Family Home

If you plan on buying an even bigger house then you can plan to earn out of it as well via renting out some space. People nowadays opt for multifamily home and recur the money required for a mortgage by the rent that they receive.


If you love DIY and are not that fond of having a house with a white picket fence and backyard then buying a condo can prove to be suitable for your budget.

You can decorate the place when you have the funds while you’re living in it and design it according to your dreams.

3. Know Where to and Where not to buy a House

After looking at the house that you want to buy the next very important decision in saving money for a house is about deciding where exactly will you be buying that house.

If you try to buy a house which is near your office and has a fully accessible grocery and other utility stores then it is a win-win situation for you.

So, while deciding about the locality make sure that you analyze various aspects about the availability of resources, park for kids to grow up in, good school and easy transportation to market along with your office.

As the money you will save on all of these expenses will be the money you can pay towards the house loan.

4. Understand all the Expenses that come along with a house

Its alluring to see your mortgage payment calculating to be lower than your rent amount but then again you need to understand that your house will come with a lot many expenses apart from mortgage.

And also, you need to set your savings goal.

So, when you are deciding on how to save for a house there are two main costs to consider: the upfront costs and the ongoing costs.

Your initial savings should be able to cover the upfront costs, and it includes your down payment, closing costs, home appraisal, and home inspection.

Here’s how you can estimate each:

Down Payment: Up 20% of your house budget, but most first-time buyers put down less than 10%

Basic home inspection: $300-$500

Home appraisal: $300-$400

Closing Costs: Between 2 and 5 percent of your total house budget

To be able to bear these costs and not exhausting your finances you need to Stop Living on a Budget and make $2000 & more Real Quick with this piece of information.

5. Earn Extra according to Future Requirements

Living in the present is acceptable but planning for the present is not. You need to make short term plans for your financial goals which can consist of future planning for the next 5 years.

Hence you need to see how old your kids are and how your financial requirements will change along with your growing kids.

And you need to efficiently plan your meals as well so know all about it in this read and save money for a house.

6. Save Money for Overall Expenses

Saving money is an art which you need to master with time, and this skill gets developed especially when you hit rock bottom. (Story of my life, wish you never face this)

So, you need to go through this read and understand that How being broke made me realize about these Good Habits and helped me in saving money.

Expert Tip: Sell your stuff

Before moving to a new house, to your own house you need to sell off all the unrequired stuff.

The less stuff you have the less you will have to pay the movers to take it to your new home.

7. Use Money Saving Apps

There are various apps that help you in saving money automatically to help you achieve your future financial goals easily.

These apps don’t demand any sort of time commitment from your end, you simply need to download them and let them do their work on its own.

8. Use your IRA

Another way on How to Save Money for a House is taking money out from the IRA.

You can withdraw money without the 10% early withdrawal penalty, so if you have a traditional IRA then you can take out up to $10,000 but you will be required to pay taxes on this amount.

If you happen to have a Roth IRA which is at least 5 years old then you can use this fund to purchase your house without paying taxes or early withdrawal penalties.

9. Savings Account

Last but not least, you will need to set up a Savings account to further enhance your saving capacity.

With the development of technology, you can choose the best Online Saving Account from this list and get higher returns than a traditional bank savings account.

Sum it up:

To reach the next level of your life, you definitely require a few changes, be it in your spending pattern or in your saving pattern.

These ways are here for you to realize that it is a much-required dream which can be brought to reality if you follow the given advice persistently.

As Every Buck Counts, you need to ensure that you save each and every buck and along with a beautiful home, plan for a Jacuzzi as well! ? (You deserve it then why not buy it?!)


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