How much should you save monthly for a house?
How much should you save each month? One popular guideline, the 50/30/20 budget, proposes spending 50% of your monthly take-home pay on necessities, 30% on wants and 20% on savings and debt repayment. For example, if you make $4,000 after taxes each month, that works out to $800 for savings and paying off debt.
How do I save money to buy a new house?
You can either consider investing in mutual funds, or Fixed Deposits (FDs), or even Public Provident Funds (PPF). Depending upon the policy you buy, mutual funds can help you earn returns of around 9-15 percent annually. On the other hand, PPF offers an interest rate of nearly 7.1 percent, compounded annually.
Why is it so hard to save for a house?
Carrying a lot of debt makes it more difficult to save for a house, since a chunk of your income goes toward repayments. That debt load can also make it more difficult to qualify for a mortgage. If you have debt, do whatever you can to reduce it.