{"id":11255,"date":"2023-11-30T18:18:50","date_gmt":"2023-11-30T10:18:50","guid":{"rendered":"http:\/\/www.imoney.my\/articles\/?p=11255"},"modified":"2023-11-30T22:53:09","modified_gmt":"2023-11-30T14:53:09","slug":"10-step-plan-to-save-for-the-down-payment-for-your-first-home","status":"publish","type":"post","link":"https:\/\/www.imoney.my\/articles\/10-step-plan-to-save-for-the-down-payment-for-your-first-home","title":{"rendered":"10-Step Plan To Save For A House Down Payment"},"content":{"rendered":"

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Everyone dreams of owning their own house someday. However, most people failed at saving up the hefty down payment that come with home buying.<\/p>\n

Though there are options out there for the middle to lower income groups to get a house without paying a huge upfront amount, such as PR1MA, most of us who are not qualified or are looking for other locations, would still need to fork out an additional initial payment to fund for the house down payment and the additional costs<\/a> that comes with it.<\/p>\n

Some of you may opt to withdraw from your Employees Provident Fund (EPF) Account 2 to fund your house down payment<\/a>, but EPF is part of your retirement savings and best kept for that. Why withdraw when you can save your way to afford that down payment?<\/p>\n

For example, a property selling at RM400,000 with 90% loan comes with a down payment of RM40,000 (10%) and an additional of about RM20,000 in fees and charges. This would approximately come up to an initial payment of RM60,000 in cash.<\/p>\n

It may seem overwhelming to save up that much, but by drawing a strict and realistic savings plan for this purpose, you will be able to afford your first home in no time.<\/p>\n

Before you start, find out how much you will need based on the type of the property you would require. Then, take a look into how and where you can save:<\/p>\n

<\/span>1. Save first before you spend <\/b><\/span><\/h2>\n

Typically, we convert whatever balance we have at the end of the month into savings, if any. This is a wrong misconception that most of us have in terms of saving. The right way to save is to set money aside as savings, for example, 30% of salary goes into saving every month. This will help set a consistent saving routine each month.<\/p>\n

The balance of 70% should be managed wisely, and you will be surprised how much unnecessary expenses you can do without when you have a clear budget.<\/p>\n

<\/span>2. Create a budget and stick to it <\/b><\/span><\/h2>\n

Create a budget by listing down your monthly expenses. Start by deducting the 30% for savings, then make changes to your monthly budget to avoid overspending. This will help identify how much you spend and what you spent on previously.<\/p>\n

With a clear budget, you can cut down on unnecessary expenditures by limiting your spending to what you need, instead of what you want. Schedule your reward time for exclusive food, cinema or clothing only once a month, with a cap in mind.<\/p>\n

<\/span>3. Look out for affordable alternatives <\/b><\/span><\/h2>\n

With lesser money to spend, you really need to know where every sen is going. If you find that you are unable to continue with your current lifestyle with just 70% of your income, here are a few things you can substitute for cheaper options:<\/p>\n