RELEASED DATE 18/03/2020
Create a spending plan wisely
To achieve your housing goal, the very beginning to-do task is to create a monthly spending plan. Just divide your earnings into three main categories in the 50/20/30 budget rule to track and manage it in the easiest way.
The first 50% of your income should go to necessities such as utilities and monthly loan repayment. The next 20% is for your long-term goals like, in this case, savings to buy a house on installments. And the last 30% should go towards flexible spending, which is likely to go up or down every month, such as wedding and funeral gifts among other things.
Once your budget has been allocated according to this rule, make sure you will follow your spending plan.
Put your savings in a bank account
In addition to planning your budget wisely and growing your savings as much as you can, consider opening a bank savings account. It will motivate you to save even more as you may need to take a certain amount out of your income to deposit at the bank. Such amount will be subject to periodical interests and constitute additional earnings for you while increasing your funds for large spending in the future.
Secure a home loan and pay in installments
When you are in possession of a certain amount of money, which, preferably, should be 50% of the house value, you may consider a home loan with monthly repayments. In Vietnam, a trusted bank like BIDV offers financial solutions for home loan borrowers and extension of loan tenure (repayment in 5-10 years or even up to 20 years for public housing), as well as special offers for customers, etc.
You may want to carefully review their interest rates, monthly payables, repayment term package options and penalties for early pay-off, etc., while taking account of your own income and repayment capability. Your earnings should be larger than the payable amount. Make sure your home installment loan will not pose a significant financial burden on your family.