Do you want to buy or build a house? Are you having trouble saving enough money for a down payment or funds to start the foundation? It takes strategy, dedication, and avoiding certain common mistakes to save for a new house. On your journey to becoming a homeowner, here are things you should not do.   

1. Failure to Set a Budget:

Not setting an exact spending limit is one of the biggest mistakes made by prospective homeowners. Without a budget, it's easy to go overboard with non-essential purchases, reducing how much you can save for your house.  

2. Ignoring Expenses: Small costs can quickly pile up and drain your funds. Use spreadsheets or budgeting tools such as Money Lover or Mint to keep track of the money you spend. Regularly review your spending to find areas where you can make savings and increase the amount you put toward your down payment money. 

3. Skipping Emergency Savings:

Having an emergency fund in place is crucial for safeguarding against unforeseen costs like medical bills and assistance to family and friends. You might have to use some of your down payment savings if you don't have an emergency fund, which would delay your homeownership.  

4. Relying only on a standard Savings Account:

Although it's safe to store your down payment or funds for your building in a standard savings account, you might not get much out of it. To accelerate the growth of your money, consider other options like mutual funds treasury bills, or high-yield investments which offer you some safety while giving you a few extra cedis in interest 

5. Underestimating Closing expenses:

A lot of first-time homebuyers do not factor in money for closing expenses, which might include commissions of the real estate agent, insurance or in the case of building for yourself, inflation. To prevent any financial stress at the last minute, find out what other little expenses you would have to incur beyond buying the house or building the structure.  This will give you a realistic and holistic idea of how much you would have to spend entirely from start to finish. Consult experts and people with valuable experiences if you can’t figure it out on your own.   

Remember, patience and persistence are key when saving for a new home. A cedi here, a cedi there and before you know it, you are a proud homeowner. It’s not an impossible task. You can do it.