This Tip to Own a Home Sweet Home in 5 Years!
Dream house? Impossible!
Hello there! Welcome to my blog. Many Filipinos are struggling really hard to own their own house. It is already a fact that most Filipinos are spending monthly rental for apartment but almost never considering the truth that owning a house is very simple and easy even if they are only earning minimum wages. At first I was not convinced by an article I read about a tip to own a house in five years but as I study these basic steps, I came to realize that it is really possible.
I and my wife had planned already to have our own house or lot but never knew how to. In fact we already reserved a lot and paid some amount but had never continued due to some financial issues. Well financial planning is only the solution to this kind of problem according to imoney.ph.
Housing Down Payment
Based on the survey, about 27% of the Filipinos want to have their own houses and in fact are planning and willing to pay only P70, 000 or less but the average housing down payment is 20% of the total housing cost. This amount is such a huge money for many but if it is planned to have this amount, it is very feasible.
Madiskarte naman tayong mga Filipino ika nga and proper financial planning and budgeting for the family is very necessary. Budgeting includes self discipline and wise spending.
To make a budget, you have to have a list of priorities of your spending (daily, weekly, and monthly). Budgeting is also a kind of training that needs patience to follow. At first it is difficult to follow but in the long run it will go smoothly.
Enhanced Budgeting Guide based from imoney.ph:
Put in your budget the following:
Savings for your dream house 25%
Tithe is an absolute percentage of your income which you return to God as He provides you your needs. (Malachi 3:10)
For emergencies, you have to set aside also a small portion of your income for any unexpected situations and so you won’t have to worry where to get money to buy medicine when necessary because you have an emergency fund.
Utilities may include your house rent (temporarily in 5 years), electric, water, other minor household needs.
Food is the most basic needs of the people because it is impossible for us to live without it. 30% of your income must go to your food while 25% should be set aside for your dream house in 5 years.
You ask how could you live with this budgeting scheme with only an income of P10, 000 a month or less? Well, I also don’t know how and I do agree it seems impossible but when we try to discipline our selves, we can do it. Let us take a look at how we can live with this kind of budgeting.
Say, you earn P10, 000 a month as a basic salary (basic means the least income you have within a month). Take 10% of it as a tithe or P1, 000. Don’t forget to take the 25% or (P2, 500) housing saving immediately save it in the bank or in a very secured place. Then the 5% or P500 for the emergency fund.
After taking those things, budget your food and utilities as follows:
Apartment: Find an apartment closest to your work place so you won’t commute going to and from work every day. This will save you time, money and effort. Get only an apartment which costs you NOT more than P2, 000 for a decent room with private toilet most especially if you have family.
Control your electricity and water. Don’t buy to many appliances such as TV, DVD Players, or the like to avoid ballooning your electric bills. Stick to P200 or less bill for your electricity. A fan may do to cool you at night. Also mind your water consumption. Always check for water leakage and don’t forget to close the tap every after use. Don’t wash clothes very often. If you can find cheap laundry shop nearby, take your dirty clothes there. This may cut your soap, water consumption, time and effort as well. Do it once a week. Stick to not more than P300 budget in water.
Before, when I was in the Philippines, our water consumption with all the washing, shower, cooking, etc. was only P230 or at the minimum fee only while our meralco bill was also around P100 – P200.
So with this budgeting, you have a remaining P600 in your utility fund. You need mobile load so give your phone a budget of P200 for a month. If you are a smart subscriber, you can avail the unlimited tri-net text for only P200 valid for 30 days. Remember, you have to use your phone wisely. Never make your phone a money dispenser because your target is to save for your dream house in five years. You still have a remaining P400. This may go to your gas or clothing but you can only buy clothes occasionally. Stay away from your fashion. Never buy new clothes if you still have ones decent to wear. As long as they are clean, you can wear them and no one could stop you from doing so.
Now let us go to your food. This may be the most difficult portion of your budget as the food and basic commodities are increasing as never been expected. Well, it is still up to your own discipline. Just remember, you can not spend more than what you earn or else, you will end up to debt and bankruptcy. P3, 000 pesos for your food is enough for you and your family. Challenge your self to live a P100 a day. Buy a P30-40 per kilo of rice and the rest is for your viand. You can buy fish and vegies for P60 which you need for a day. Discipline your mouth not to be tempted to buy junk foods but expensive ones. It is all a matter of self discipline and take a little patience to have your own dream house. Try to have pot or container garden in your apartment where you can get your free vegetable. It not only saves you money but also gives you fresh and healthy food.
If you can, find time to have side lines for additional income. Try to increase your income while lowering your spending. At your spare time you can do small jobs or part time business to increase your income if you need.
I hope these tips would help you in your pursuit in life: to have your own dream home sweet home for you and your family!
God bless you.