How To Save For A House In Ghana

November 8, 2022

Written by Dorcas Obenewaa Owusu

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Saving to buy a house in Ghana is no child’s play. For average income earners, it can take years to buy that dream home. Most houses are also priced in dollars. So paying the cedi equivalent can break your bank account

But it’s not all doom and gloom. Buying a house in Ghana is still possible, you just need to have a solid plan to achieve that goal. Let’s talk about how

Do a self-assessment

Self-assessment involves asking yourself the tough questions and setting a realistic timeline. How much does the house you want currently cost? How many years will it take to save up and buy it? Remember that location and inflation also affect the price of houses in Ghana

Your income, financial obligations, family size, and spending habits will determine how much money you can set aside for a house. Balance it out so it doesn’t take a toll on your general finances

Divide the amount into smaller savings goals each month to ease the pressure

Create a financial plan

You may have your eye on an expensive Trassaco mansion. But if your savings goal doesn’t match the price, then it’ll be better to look for a different house. The higher the price, the longer it’ll take to save for it.

Check how much you’ll need to buy a house. And automate that to a high yield savings account.

Be frugal, use a budget to review your expenses and see where you can adjust your spending. Also, create a long-term plan to pay off debt. Less debt, more savings. Try not to blow extra, unexpected money you get. It’s better to divert all or part of it into your savings

Get multiple streams of income

Earn some extra cash with freelance jobs or money-making hobbies. However, choose side jobs that you enjoy and that also pay you relatively quickly. For example, if you love writing, it can be very time-consuming to start a blog or apply for jobs on gig sites. You can rather write for niche blogs or agencies that pay per gig

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Consider upskilling by taking courses. by taking courses or earning certifications, depending on your industry. That way you can switch jobs, land a higher paying job or ask for a raise

Invest your money

This depends on the time frame in which you want to buy the house. If your goal is less than 5 years away, you can choose high-yield, low-risk investments such as bonds, treasuries and high-yield savings accounts.

  •  High-yield savings accounts are accounts that offer higher interest rates than traditional accounts
  •   Treasury bills are sold by the Bank of Ghana on behalf of the government. They have a maturity of between 92 and 182 days
  •   Bonds are also similar to treasury bills. However, they are longer-term investments with maturities of more than two years

These investments tend to be less risky compared to buying stocks. Stocks are more suitable for people who plan to buy a home in 10 years or more

Also, don’t put all your eggs in one basket, either. Diversify your investments to manage risks

Final thoughts: Saving for a house is a long, daunting task. Don’t rush the process. Track your progress regularly to stay motivated

 

About Mesika

Hey there, my name is Isaac Sesi. I built Mesika to provide free personal finance resources online to help young Ghanaians become smarter about their money.

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