Purchasing a property, land, or house is not a luxury left for the rich. Matter-of-fact, even some of the ‘rich’ are unable to buy properties, because being wealthy or having money to spare doesn’t equal the ability to purchase a property, rather the intentionality, strategic planning, and saving of one’s finances.
Saving involves a great deal of discipline, consistency, and patience. This is why, irrespective of a person’s income, as long as they are committed to saving, they can purchase whatever they desire, often after some time, depending on the net income.
Now if we’re working with ₦700,000 as your monthly gross income and you are looking to purchase a property worth ₦10,000,000, it’s best to recognize that there are certain things you would spend on; the likes of tax, transport fare, feeding, and if you’re wired that way; tithe, among others. However, you also need to understand that, despite these deductions, acquiring the property is still possible.
In order to bankroll these fixed deficits, save up, and still be able to catch a soft life moment, the first line of action is planning. While there are many planning methods, one that has always been effective is the 50-30-20 method. This method allows you to allocate 50% of your income (₦350,000) to your needs: feeding, transportation, utility (light, water, gas), health insurance, etc.
This rule allocates 30% (₦210,000) to your wants, the things you desire to have but are not usually categorized as urgent; rent, spread, soft life, wardrobe and accessories, debt repayment, etc. Sometimes, tax deductions are calculated at 30%.
Lastly, there’s the 20% (₦140,000) that is dedicated to savings, investment, and (if you do) tithe. Seeing as this is the smallest percentage of the money, it is easy to divert or misappropriate it into other ventures. This is where your discipline should come in, with you
keeping your eyes on the prize, the 10 million Naira you need to purchase your dream property.
You now have a working plan, and hopefully, discipline, patience, and consistency should not be forgotten. ₦140,000 has to be multiplied by quite a lot to attain ₦10,000,000. You have to keep showing up with your 20% month after month.
Fortunately, there are real estate companies that provide payment plans for properties, so even if you do not have 10 million ready in one envelope, you can pay in instalments, with 50% as the initial deposit and the other 50% spread out across some months. This helps so that you do not feel overwhelmed by the number of months you have to save up.