How to save up for an apartment with any salary?

Sooner or later, a person faces the question of acquiring his own home. The cost of such a purchase is very high, which is why the housing issue is really urgent. While most prefer mortgage lending, many people still act the old fashioned way: for a long time save their savings and accumulate the full amount. About how to save up for an apartment with a salary of an average level and below, and whether it makes sense, we will write in more detail in the article.

Is it worth saving up for an apartment?

To begin with, let's ask ourselves whether there is any point in saving up for an apartment, and not just using mortgage lending. The biggest disadvantage of the latter is that you have to overpay a rather impressive amount to the bank for the opportunity to use its money.

If you take a loan for a period of 10 to 30 years, then you will have to pay 2-4 times more for an apartment. Of course, if you live with your parents and the issue of purchasing your own housing is not acute, it will be easier to save.

In the opposite case, there will be a need to rent housing. It is worth noting that the rent is often more than you will pay in interest. Because of this, the meaning of saving money is somewhat lost. In favor of a mortgage, you can also point out that it will take a very long time to save up for an apartment and anything can happen during this time. Economic crises and inflation increase the cost of housing in rubles, but users of mortgage products will not notice this. This is valid only if you do not take loans in dollars or euros.

And of course, do not forget about various social programs. First, you can significantly reduce the interest rate through government-supported products. Secondly, at the expense of maternity capital, you can get money for a down payment or early repayment of a loan.

And of course, do not forget about the tax deduction, which is returned twice, namely from the cost of buying a home and overpayment of interest. The tenant will not give you such a gift. With all these points, it seems that there is no point in saving money, but we will describe how to save up for an apartment with a salary of 20,000 rubles or more with maximum benefit.

Converting savings

The most obvious way is to use the money set aside. Let's say you save $20,000 a month. In a year it will be 240 thousand. If you put money in the bank at compound interest, you can get an additional 20 thousand. Of course, this amount seems small, but already next year you can get about 50 thousand from the accumulated and new money. Every year the amount will only grow and the money you accumulate will increase by itself.

Also, when you have accumulated a large enough amount, you can protect yourself and spend money by buying real estate, for example, a room or a one-room apartment on the outskirts, and then we rent out our property. You can also completely move into your new property, which will be especially true if you rent housing yourself. The money you save will help you buy the property you want even faster.

The latter method, especially if you have accumulated an impressive amount, may be even less profitable than a savings account. At some point, your money will start to generate more income than you spend on rent. But do not forget about the precariousness of the economy. Today you are rich, tomorrow your savings are worth nothing. Real estate will always remain real estate and the chance that it will depreciate is less than in the case of a depreciation.

There are, of course, more extreme ways to save up for an apartment with a salary of 50,000 or less. For example, the stock market. But in fairness, it should be noted that if you know how to play the stock exchange effectively, then most likely you don’t have the issue of saving, and your salary remains out of reach for the majority.

Working harder

Perhaps, in order to save up for an apartment faster, you just need to earn more. You can find a second job, but this is a rather difficult way, which is very exhausting. It is easier to work from home. Freelancing is quite common these days. This area covers a fairly wide range of various specialties. On a variety of sites and exchanges, you can even find offers from people who just know how to dance.

You can turn your hobby into an additional source of income. Do you like to make different knick-knacks? Try to sell them. Most people do not even suspect that their favorite hobby can also bring significant income. If you are computer savvy, you can repair or assemble them at home. People with good knowledge of languages ​​can try themselves as teachers.

If your earnings are not enough for anything, there are no special skills, it is impossible to make a profit from a hobby, and the question of how to save up for an apartment with a salary of 30,000 or less simply leads to a stupor, you should think about changes. The work is unpromising and low-paid - we are looking for a new job, learning a new specialty, gaining additional skills for career growth. Of course, you can love your job, but what's the point of it if there is still not enough money for anything?

Using alternatives

To save up for an apartment faster, you need get rid of extra expenses. Of course, you can limit yourself, but often the most expensive is renting a home. If it is possible to live with your parents or in any other way without spending money on rent, this will help you a lot. If this is not possible, you should look for cheaper housing, up to renting a small room.

An interesting option is buying a motorhome. You will only have to pay for parking, for their electricity and water. If you initially buy a used vehicle, then during the subsequent sale you can do without losing money. Or maybe you even want to stay in such an unusual mobile home.

conclusions

Many people wonder how to save up for an apartment with a salary of 40,000 or less. There are various ways that you can significantly speed up the process and make money work for you. However, it should be understood that self-saving money often does not have advantages over a mortgage. There is always a risk of losing savings due to an economic crisis.