How to Save Money to Buy a House Based on Your Salary

A house is not just a place to live, but also a symbol of independence, security, and comfort for a family. However, the ever-increasing price of houses often makes this seem difficult to achieve, especially when adjusted to monthly salaries.

In fact, the key to buying a house is not only a large salary, but also strategy and consistency. With proper planning, you can save money strategically, build a down payment, and gradually build your financial capabilities.

So, for those of you who are saving up to buy a house, check out the following tips on how to save money so that your dream house can soon become a reality!

1. Set a Realistic House Target

The first way to save money to buy a house is to set a realistic target. A target that is too high will only make you feel pressured and give up easily. On the other hand, a target that is within your means will make you more enthusiastic because it feels achievable. In this case, two important aspects need to be determined, namely:

a. House Location

Location significantly affects a house's price. Houses in the city center are typically more expensive than those in the suburbs or on the outskirts. If your income is still limited, consider a more affordable location with good transportation access.

b. House Type and Price

Ensure you know whether you need a type 36, type 45, or a larger house. Remember that housing is a necessity, not just a desire. Then, research house prices in your target area. Once you know the price range, you can accurately calculate your financial needs.

2. Calculate Your Budget Requirements

In addition to saving for a down payment, do not forget that buying a house also requires additional funds. Therefore, you need to calculate your complete budget requirements. Some of the plans that must be prepared include:

a. Down Payment (DP)

Generally, the DP for a house ranges from 10% to 30% of the house price. For example, if the house price is IDR 400 million, the minimum DP is IDR 40 million (10%), but it would be safer to target a larger DP to keep installments lighter.

b. Monthly Mortgage Costs

In addition to the DP, you must calculate your installment capacity. Ideally, house installments should be no more than 30% of your monthly income. If your salary is IDR 6 million, then a safe installment would be around IDR 1.8 million per month. This is essential to maintaining your financial stability.

c. Additional Costs

Some additional costs that need to be taken into account include:

Notary and title transfer fees.
Taxes (BPHTB, PPh, etc.).
Bank administration fees (if you take out a mortgage).
Appraisal fees.
Insurance fees.
Minor renovation and furnishing costs.

3. Determine a Reasonable Savings Period

Once you know how much money you need, the next step is to determine the savings period. The sooner you want to reach your goal, the more you will need to save each month.

For example, let's say your target down payment is Rp60 million. Here is an estimate of how much you will need to save:

If you save for 3 years (36 months), approximately Rp1.67 million per month
If you save for 5 years (60 months), approximately IDR 1 million per month

4. Apply a Savings Method Based on Your Salary

Saving to buy a house will be difficult if you do not have a savings system. Many people intend to save but fail because they rely on the money left over at the end of the month. In fact, this method almost always fails. Here are some effective methods you can apply:

a. Pay First Method

When you receive your salary, set aside your house savings first. Consider house savings as an obligation, not an option. This method will make saving automatic without depending on your mood.

b. Financial Account Method

With the financial account method, you will find it easier to control your expenses and ensure that your household savings are not depleted. Here are some financial account strategies you can use:

Basic needs.
Transportation.
Other installments (if any).
House savings.
Emergency fund.
Entertainment.

c. Auto-debit Method

If you often forget or are tempted to use your savings, set up an auto-debit system from your salary account to your house savings account. Use an account that does not have an ATM card or is not connected to an e-wallet for better security.

5. Separate Your House Savings From Your Regular Savings

A common mistake is putting all your savings in one account. As a result, your house savings can easily be used for unexpected needs that could actually be handled in other ways.

To overcome this, create a special savings account for your home and avoid using it for daily transactions. Next, choose a type of savings that is difficult to withdraw quickly, such as a time deposit or money market mutual fund.

6. Gradually Adjusting Your Lifestyle

Saving to buy a house often requires lifestyle adjustments. However, these adjustments do not have to be drastic. You can start with small habits, such as reducing the frequency of eating out, limiting entertainment expenses, or postponing the purchase of non-essential items.

Small changes made consistently will have a big impact in the long run. In addition to helping you reach your savings goals, more controlled living habits will also shape healthy financial patterns even after you own your own house.

7. Take Advantage of Additional Income

If your monthly salary is not enough to reach your savings goals, you can look for additional income from side jobs, such as freelance work or small businesses that match your passion and skills.

8. Prepare an Emergency Fund

An emergency fund is the main protection to ensure that your house savings are not disturbed. Without an emergency fund, you will easily withdraw your house savings when something unexpected happens, such as sickness, job loss, or family needs.

The amount of this emergency fund should be enough to cover 3-6 months of living expenses. However, if you already have a family, ideally, it should be enough to cover 6-12 months of living expenses. This emergency fund should be kept separate from your house savings and can be quickly withdrawn when needed.

9. Align Your Dream House with Building Quality

As your dream of buying a house gets closer, your attention should not only be focused on price and location, but also on the building quality. A house is a long-term asset that you will live in for many years, so the selection of building materials is an essential consideration.

One material that greatly determines a house's quality is cement, because it provides the foundation for a building's long-term strength and durability. Especially in humid or rainy areas, houses need extra protection to prevent problems like moldy walls.

In this case, using Semen Merah Putih Watershield products can be an option. With water-repellent technology, this cement provides double protection against water seepage from the outside, the inside, and the ground through capillary water, helping reduce moisture in the building.

If you would like to consult with us about your dream house and the materials used, contact us now and get the best solution for your house construction!