If you don’t have your own house yet, then you know how it feels, and understand the struggle. Having your own house in Pakistan is now almost a dream given the skyrocketing prices of real estate and the limited opportunities to generate income. However, all is not lost! With some dedication and smart, short-term sacrifices on your part, you can save money while living in Pakistan for your beautiful abode. So, here are seven simple but effective ways to save money for a house in Pakistan.
Divide Your Monthly Income into Three Sections
Salaried individuals are the happiest on payday, while business people get more pleased with every new customer or a new sale. In any case, since you are already interested in saving money for a house, you should follow the 50/30/20 rule of budgeting. Let’s say your monthly income is PKR 100,000. Spend 50% on your actual needs, 30% on the things you want and the remaining 20% goes into your savings. Promise yourself that this 20% will only be spent on your house. Sticking religiously to all the three sections is mandatory if you want to make your dream come true.
Say Yes To Cash and No to Credit Cards
A wallet full of credit cards might look shiny, but in reality, it is a one-way ticket to debts. Due to the independent nature of credit cards, you often go beyond your limited purchasing power and even end up getting things which are of no use to you. Getting something on credit might look like a relief, but remember that the joy is going to be short-lived. Sooner or later you will fall back on your liabilities, and this is where things will go horribly wrong for you and you will not be able to save money for a house in Pakistan.
Using a credit card for a middle-income salaried person is akin to playing with fire – strictly not recommended! Trying using cash for your purchases and remain in control of your spending. This is one of the excellent ways to save money for a house in Pakistan.
Be Smart on Spending
When it comes to savings, you are required to investigate your spending patterns for buying a home in Pakistan. One of the ideal ways to save money for a house in Pakistan is to cut unnecessary shopping, especially from the digital world and you can do that by knowing the 7 hacks to save money while shopping. It has also been observed that online shopping is where most people tend to go overboard.
When it comes to saving money for a home in Pakistan, even the little things matter, it is always recommended to visit the main market or Sabzi Mandi to shop for fruits and vegetables. However, if visiting Sabzi Mandi will incur more expenses, then make sure to purchase your greens in the evening or at night because the sellers usually sell them at lower prices during these hours.
Even though entertainment is necessary to keep you productive, it is counter-entertaining to go all out. If you have children, then take them to parks instead of expensive gaming zones and malls. And if you are a movie lover, then avoid watching movies in cinemas and start viewing them at home.
Likewise, wasting money on cigarettes and other similar products will not only harm your life, but it will also hurt your chances of buying a home.
Stop Punching Above Your Weight
Embarrassed at the thought of travelling in public transport? Can’t be seen in a rickshaw or walking to somewhere? Why not buy or lease a small car? Counter-productive thoughts like these are keeping you away from owning your own home. Never sacrifice your needs over appearing cool. If having a car is a must, then stick to a simple one and avoid the costly, luxurious choice. You will have to take wise steps to save money for a house in Pakistan, and travelling by public transport might be one of them.
The same goes for renting a home. Since you are saving money, don’t pick a posh area to live in. You know rents are higher there compared to other areas. Keep thinking about the goal: your own home.
Take Care of Your Utility Expenses
You simply cannot be careless when it comes to utility services. It is better to use energy savers than high voltage lights, don’t leave the electronic appliances turned on without any reason. Furthermore, always try to pay your bills on time or risk paying a fine, which is going to wreck your entire budget.
Hard Work Pays Fortune
Working hard is mandatory for achieving any goal, be it big or small. It is also essential for you to manage time. Try to find multiple ways of earning as they will help you in maximizing your savings. So, apart from your regular job or business, try to find ways to sell your skills. Also, try your luck at freelancing as many Pakistanis are generating an excellent revenue via freelancing.
Save and Invest Rule
Even though saving is a good habit and a great way to achieve your goals, experts will always advise you to invest your savings and not let it rot in your bank account. We all know what happens will a sudden currency devaluation hits, reducing our savings with it. Be smart when it comes to investing and don’t fall for scams promising unrealistic returns.
When it comes to investing your savings, gold, and prize bonds are always a good option. Another safe option is to invest in a savings account in either a private bank or various government schemes. The profit rate offered by private banking sectors may vary from bank to bank. However, the national savings scheme, also known as Qoumi Bachat by the government of Pakistan offer 8.50% annual profit on your savings.
These are some great ways to save money for a house in Pakistan. So, make sure to start from today. Don’t quit on saving money because you never know when your savings get matched with the listings for a house for sale. So wait for that lucky day.