You can save to buy property

  Victoria Igbe

It is quite shocking how a lot of people leave as tenants, spending huge amount of money on rent, whereas they have what it takes to become landlords.

This people have not realised the power and importance of saving money in order for them to acquire their own property to avoid the pressure of rent fees from landlords.

If people do not inculcate the habit of saving, they will definitely end up as a tenant throughout their life.

Tips to save for property:

. Set up a special interest-bearing savings account to buy a home. Money only goes in; no withdrawals are allowed.

. Take a fixed amount - 5, 10 or 20 percent, depending on what you can consistently afford - from your paycheck and put it directly into your savings account. Ask your employer to have that amount automatically deducted from your paycheck every pay period so you aren’t tempted.

. Pretend any windfalls that come along never happened. If you get a lump sum of money from a tax return or a gift, put it directly into your special account.

. Go shopping for food, clothes or other items only when you absolutely need something. When you do shop, write a list and stick to it. Avoiding impulse purchases can save hundreds of naira over several months.

. Cut down on outside entertainment and eating out. Instead, stay home, rent a video and invite some friends over for a meal.

. Let your friends and family know you are saving to buy a property. Most will be very understanding about the fact that gifts and extras from you will be put on hold while you’re saving. Don’t forget to stash away the money you would have spent.

. Remember that every penny counts. Drop all spare change into a bottle, and every month, put that cash into your account.

. Get rid of the things you don’t need by selling them. Get a few families in your area to join in to increase your sale. The benefits are twofold: You get cash for your unneeded stuff, and there will be less to move when you’re ready to buy your home.