"One of the most important and expensive things a person can purchase is a house. But many of us cannot afford to pay the total amount of a house at once. That is why we are planning to apply for a housing loan in Pag-IBIG or any private financial institution that offers a home loan with the lowest interest as possible.  To start with our application we need a downpayment. Be it for reservation, developer's fee or for a principal amount of your loan. Always remember that the higher the down payment, the lower your monthly amortization and interest. With this, we need to save enough for our downpayment. But how? The following are 10 tips on how to save for your home downpayment. These tips are effective especially if followed religiously.  1. Make and Set a Realistic Goal  If you are planning to apply for a housing loan or buy a house, the first thing you should do is to set a realistic amount that your financial capacity can accommodate. Financial advisors recommend the ""2.5 rule""; that is, take your annual income and multiply it by 2.5. The product is the cost of the property you can afford.  For example, if your monthly take-home pay (after deductions and taxes) is Php50,000, then the price of the property you can afford is Php1.5 million. From here you can determine how much money you should have for down payment, which at 20 percent of the purchase price should be P300,000.  2. Open a Savings Account  The first and most important step to save for your down payment is to open an account where you can deposit your money. With your regular savings, you can stay on top of your finances. In that way, you can make sure your savings are dedicated to what is most important. With a separate savings account, it is harder for you to withdraw your saved money.  3. Save the Tenth Part of Your Monthly Salary  Aside from your tithing, save 10 percent of your net monthly income for your house downpayment. Remember, always pay yourself first in the form of savings. This is an old yet reliable approach to save. It will take you a long way but it won't take forever. You have to start this as soon as possible. The 10 percent of your monthly salary must be deposited into your savings account.  4. Sell Stuff You Don't Need  Giving things you don't need is nice. But if you need money for more important things you can sell stuff you don't need at home. Just be practical. You can sell unwanted household goods or make a garage sale of your clothes and shoes you no longer use PlayStation, Xbox and other items that only collect dust and use space in your house. Put the money in your savings account.   5. Eliminate the Luxuries  If you want to fast-track your savings for your home down payment, you need to eliminate some of your luxuries. This may include once-a-week lunch at a fancy restaurant, night out with friends, new clothing every four-weeks, buying of a high-tech phone once in a while among others. Before spending your hard-earned money, ask yourself first, it is a ""wants"" or a ""need""? Within a year, your barkada may brand you as ""killjoy"" but this strategy can save you a thousand of pesos aside from the sense of fulfillment and financial independence.  6. Live not within but below your means  If you live within your means, nothing left for you to save. Instead, live below your means so that you can save for your downpayment. Spend responsibly and avoid any reckless or unnecessary spending. Avoid impulsive buying and be frugal.  7. Look for a Part-time job  If you are really serious about saving for a home down payment, then you have to look for another source of income. You can use your skills and talent with this in your free-time. A part-time job like tutoring, computer repair, driving, travel guide, and other freelance work. There are websites that have listings of part-time jobs for professionals, such as WriterAccess for writers and editors, DesignCrowd for artists and graphic designers, and Elance and oDesk for everyone else.  8. Pay off Your Credit Card Debt on Time  Paying your credit card bills on time will save you on interest charges in the long term. Financial advisors recommend eliminating the use of credit card. They say if you can't afford to pay for an item in cash, then you can't afford it, period.   By following these tips,  you can secure your house downpayment within few years. Having a house is one of the best things we can have not just for ourselves but also for our family. For all of us who dreams a house to call our own, it is never too soon or too late to start saving. Start today and keep working towards your goal."
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