Hello, dear readers and subscribers of the business magazine BabloLab.ru. Your own apartment is a guarantee of independence and space for many activities. In Russia, the housing problem is quite acute; many people, even after 18, continue to live with their parents for a long time. In the article we will look at how to save up and earn money for an apartment in 1-3 years, what you should adhere to and what to avoid.
From the article you can learn real ways to save up and earn money for an apartment and where to start + examples.
How to save up and earn money for an apartment in 3 years and a year: expert advice
To achieve any results faster, you must first familiarize yourself with the experience and advice of previous people. This section contains tips that will help speed up the accumulation process.
No. 1. Get organized
Saving up for an apartment is not difficult. The main thing is to learn to organize yourself: to work effectively and save correctly. These 2 most important components allow you to achieve any goals in 3 years, not just buy real estate.
Self-organization includes:
- Improving work efficiency;
- Cost control;
- Financial literacy;
- Time management;
- Smart investment of funds.
This minimum set of skills allows you to quickly save up for an apartment and generally improve your financial condition.
No. 2. Change your thinking
The rich get richer, the poor get poorer. All people are initially equal in their capabilities; the question is who knows how to think and act correctly. In this section we will describe the habits that you need to get rid of and that you need to acquire.
Get rid of:
- Bad habits. Smoking and drinking takes up a significant portion of your finances. This also includes clubs, cafes, bars, etc.
- Pessimism. Entrepreneurship is a risky business and it is impossible to do without mistakes. In the end, only prudent optimists who do not give up after the first failure win.
- Uncertainty. If you want to achieve results, first plan everything, then act decisively and without stopping. This is the only way to achieve success.
Learn to:
- Analyze your behavior and spending. Any mistakes can be avoided if you learn to evaluate the actions performed from the outside.
- Planning. Any successful businessman will confirm that it all starts with simply making a to-do list for the day. Just listing tasks increases productivity by 25% in 5 minutes.
- Regular sports. Daily physical exercise increases brain productivity and reduces stress levels, which allows you to make all decisions more rationally. Just running 30 minutes a day is enough.
- Reading books. Any work has a useful thought and message. Just 10 minutes a day every day will leave a significant residue for the future.
Overall, if you learn these 4 skills, you will notice that you become much more productive. And financial enrichment first of all begins with expanding knowledge.
No. 3. Create strict rules and don't break them
Every family experiences difficult moments and behavior during this period affects financial stability. One of the simplest methods: make rules for yourself and strictly follow them. For example:
- Don't go to the store without a list;
- Always keep records;
- Plan costs;
- Do not take money from the business budget;
- Do not spend money on unnecessary purchases;
- Always save 10%.
Everyone should make a list of restrictions on their own and learn to save and save money with a small salary. This not only disciplines, but also helps to significantly reduce costs.
No. 4. Take action, stop sitting idle
Many of the readers, after reading, will get excited about the idea, plan something and forget. Such people never achieve success; if there is no action, then there is no result either. All the methods you’ve read will only really work if you follow them.
No. 5. Don't listen to envious people and don't be afraid of mistakes
At the first stages, the task will seem difficult and overwhelming. This happens to everyone; there will probably be pessimistic friends who will try to dissuade you or lead you off course. To buy an apartment you need to save up
No. 6. Don't be lazy
At the end of the article, a way to achieve the goal is described. In the end, it all comes down to devoting 1-2 hours a day to additional activities. If you waste time on unnecessary activities, then there is no point in talking about any additional income.
No. 7. Save, but don't forget to look for new income
Saving is a useful skill and it helps you save up to 50% of your costs. But if you want to achieve the best results, learn how to save and increase your income at the same time.
6 working ways to earn money to buy an apartment for young people.
How to earn money for an apartment: TOP-6 modern ways
There are various ways to buy without a mortgage. Each of them will lead to the final result, you just need to not give up.
No. 1. YouTube
Video hosting has long moved from the category of entertainment to a large platform for the production of media content. According to statistics, after just 1 year of hard work, a blogger reaches 15-50 thousand rubles per month.
The main task in this business is to guess the direction and interest the audience. There will be viewers - advertising will appear. For effective channel development:
- Think over a content plan;
- Release videos regularly;
- Regularly improve the quality of the material;
- Advertise;
- Look for sponsors.
Find your niche that will be of interest to viewers. How to run a business on YouTube is a separate topic in the article, but in general it all comes down to attracting the attention of the public and retaining views.
A blogger’s entire income depends on the price of his advertising and the demand of advertisers. On a channel of 100,000 viewers, a commercial display costs 5-50 thousand. Make 4 inserts + third-party sources per month and 25,000 are guaranteed.
No. 2. Instagram
A media personality develops simultaneously in many sources. Instagram bloggers earn no less than others; already with 10-50 thousand subscribers you can earn money from commercial posts. As a rule, Instagram is promoted simultaneously with another source of income.
According to statistics, advertisers consider $1.5-2 per 1000 subscribers to be the norm. Based on calculations with 20 thousand subscribers for one post, we get $40, which is approximately 2000 rubles. 4 orders in a month and 8-10 thousand in my wallet. The main thing is to learn how to choose advertisers correctly and communicate competently with the audience.
No. 3. Freelancing
Voluntary labor is quite profitable and stable. The most popular on the Internet are:
- Designers;
- Programmers;
- SEO optimizers;
- Copywriters;
- Site administrators.
It is enough to devote 1-2 months to learning any specific task and you can enter the stock exchange. Master website administration or backend development skills and you can significantly increase your income.
No. 4. Investments
Large millionaires do not work around the clock; part of their income comes passively from investments. Investing 100,000 you get 1000-5000 monthly. But the problem is that to start, you must first accumulate finances.
No. 5. Resale of Chinese goods
A simple and effective method: you buy goods abroad and sell them at a higher price. The question is that you need to learn how to sell and negotiate with suppliers correctly.
No. 6. programming
The 21st century is a time of active development of technology; there are not enough programmers and there is a great demand for them. To become a specialist, you need to graduate from a university, but for a freelance exchange, a month’s course is enough, and then it’s a matter of practice. The main thing is to be able to find customers and do the job well.
In the field of programming there is a simple rule. The more skills, the higher the pay. They don’t look at education; practical skills and experience are more important.
No. 7. SMM, SEO and online marketing
The Internet has become an indispensable part of modernity. Sales are carried out through a global network and, according to statistics, they bring excellent income. But competition in the market does not allow anyone to enter the field. Therefore, companies need specialists who will bring their products to search results, promote accounts and increase sales.
How to increase the likelihood of loan approval if there is no official income
In reality, you can get a mortgage without official employment in a very small number of credit institutions. There are many reasons for this. It is believed that freelancing and home work do not guarantee a stable income. In addition, people who do not have employment contracts are more mobile.
There is always a risk that the debtor will move to live in another region or country, and the bank will have to spend time searching for him, selling the collateral through the court and electronic auctions. In addition, the value of real estate may change significantly downwards following fluctuations in market conditions. Therefore, the likelihood of refusals increases if the potential borrower is not listed anywhere as an employee.
You can increase the likelihood of your application being approved if:
- provide liquid collateral in addition to the purchased apartment or house. But their assessed value is almost always lower than the market value. In addition, banks set a limit at 65-70% of the amount indicated in the report in order to insure their risks;
- collect all available documents confirming regular and stable income. If these are current account statements, they are certified by the servicing bank. If lease agreements are provided, they are visaed by the Federal Tax Service. The best addition would be a 3-NDFL declaration confirming payment of income tax;
- confirm the availability of money necessary to pay the down payment. It is better not to limit yourself to the minimum amount. If the borrower does not officially work, the bank can increase the down payment amount to 50% or higher;
- agree to issue an insurance policy. We are talking not only about compulsory insurance of the purchase object, but also about the life/health of the debtor for the entire period of financing;
- submit applications simultaneously to several banks. It is important to remember that large banking structures carefully and meticulously check their future borrowers, which increases the likelihood of refusal.
Recommended article: What happens if you don’t take out mortgage insurance
Small regional banks are more likely to agree to cooperate with a borrower operating without registration. But you shouldn’t count on a large amount and long loan terms.
How to save for an apartment: TOP 7 working ways to earn money for housing
The methods described above are related to modern methods; they appeared relatively recently and are not suitable for everyone by nature and area of interest. Therefore, we suggest that you familiarize yourself with time-tested methods.
No. 1: Mortgage - easy, but long to pay
If you need to quickly move into real estate (there is nowhere to live and work), then a mortgage is an indispensable item.
If you take out a mortgage, look for additional income. Regardless of whether you can cope with the payments or not, you will still need finance to pay off the debt.
No. 2: We rent out someone else’s home
The method is similar to reselling goods. We find someone else's housing and enter into an agreement with the owners. If the condition of the premises is good, then we immediately engage in resale. In another case, we first repair, create favorable conditions and rent out the property.
No. 3: Developing our business within the city
The Internet occupies one of the leading positions, but people need to eat, repair equipment, etc. Start developing your business within the city of residence, and the Internet will be an excellent addition to attract attention.
If there is no money at all to start (you need at least 50-100 thousand), then you need to start with the service sector. Exchange skills and knowledge for money.
No. 4: Own website
The information business is completely dependent on advertising; you can earn $1000 monthly from one blog. But such income is possible after hard and regular work: choosing topics and filling it with content. The process is not complicated, but the blog will begin to generate stable income in 6-12 months.
No. 5: IIS
Many people are interested in how to earn money for an apartment without having their own. If you don’t have your own property, then you need to save for it. As you know, banks offer deposits at 6-7% per year. Taking into account inflation, this interest is not enough to cover expenses.
The government is accommodating to citizens; they offer to open an individual investment account and receive a tax deduction after 3 years. This was written in more detail in previous articles. Unlike a bank, you invest in company shares and receive dividends from it; a return of 10-15% per year is considered the norm.
#6: Trading
Professional stock trading allows you to get rich in a short time. But to do this, you need to learn how to analyze stock exchange charts and predict rate movements. Unlike other investments, the trader works with small amounts, but for short periods: days, weeks.
According to statistics, 90% of traders lose their initial capital within 3 months. This occurs due to haste and reluctance to analyze risks in detail. If you want to become a trader, spend 2-3 months studying techniques and methods before entering the stock exchange.
No. 7: Seasonal and situational business
Within the city, the entire service market can be occupied on a permanent basis. Instead of competing with giants, it’s easier to make a leap in a seasonal direction. In June - an entertainment agency, in September - office sales, etc.
What documents are required to apply for a mortgage loan?
You can take out a mortgage without official employment, but the borrower’s identity will be checked especially carefully and for a long time. Each bank sets its own requirements for the package of documents. In general, it is worth preparing:
- general passport;
- international passport (if available) with border crossing marks;
- driver's license, PTS, if you own a car;
- proof of income. These are statements of current accounts and debit cards, GPC agreements or property rental agreements, etc.;
- marriage certificate (if available). If there is a marriage contract defining the order of ownership of real estate, it is provided to the bank.
If you plan to transfer an apartment, a summer house, or a plot of land to the bank as collateral, you will need:
- extract from the Unified State Register of Real Estate. Standard validity period is 30 days. It should not contain encumbrances, for example, imposed by the FSSP or other banks;
- certificate of ownership (if available). At the current time, this document is not issued in paper form;
- appraiser's report. To conduct an assessment, it is better to contact an organization accredited by a specific bank. Otherwise, the document may not be accepted for consideration;
- cadastral and technical passports or extracts from them;
- insurance policy. During the lending period, the collateral is insured in favor of the lender;
- documents confirming the transfer of ownership of real estate. This may be a privatization resolution, a purchase and sale or donation agreement, etc.
Recommended article: Mortgage secured by existing real estate
A similar package of documents is provided for the purchased housing. If co-borrowers or guarantors are expected, they are subject to the bank’s general requirements regarding documents.
The spouse automatically becomes co-borrowers, unless otherwise determined by the legislation of the Russian Federation or the current marriage contract.
Is it possible to save up and earn money for your own apartment if you have no housing and no mortgage?
The above methods are known to many. But the question is how to use the knowledge gained. For a preliminary calculation, let’s take the amount of 3 million rubles; with this money you can buy normal apartments.
Option No. 1: Term for 1 year
There are 365 days or 12 months, which is approximately 52 weeks. Therefore, you need to save 250,000 a month. For most Russians, this is an unaffordable amount and it is difficult to reach such money in 1 year. And after 1 year, any business just begins to achieve stable profits and recoup costs.
Option #2: Accumulate in 3 years
It is extremely difficult to save up in 1 year, especially without preliminary savings. If we increase the period by 3 times, we get 36 months and 83,340 rubles/month. This is already close to reality, but it is still extremely difficult.
Option #3: 10 years
This is quite a long period of time and you need to be patient in order to be able to save for a long time on your own. But now the monthly costs are only 25,000, which is already closer to reality.
You can save up, but is it necessary?
If there is no highly profitable business, then it will be difficult and time-consuming to save on your own. In the best case, with an average salary you will have to save 25,000 monthly.
If you don’t have your own home, then it is more advisable to take out a mortgage for a long term. But if real estate is purchased simply in addition to the main one, then it is enough to simply postpone and not violate the deadlines.
Real examples of saving money to buy your own home.
Alternative methods of income verification
When issuing a loan, the bank wants to have a money back guarantee. The situation is simplified if there is liquid collateral. As soon as the borrower stops paying, his property is sold at auction. The proceeds go to cover debts. If a consumer loan is provided without collateral, the solvency of a particular person is assessed based on information from 2-NDFL.
Important! The certificate contains information relating not only directly to the potential borrower, but also to his employer. Preference is given to budgetary organizations, reputable companies without arbitration disputes or debt collection through bailiffs.
In the last decade, more and more Russian residents are choosing entrepreneurship, freelancing, and GPC agreements. These ways of earning money are good for everyone (free schedule, the ability to independently determine your work schedule), except for one. It is not possible to obtain an income certificate. Does this mean that you should forget about getting a mortgage loan once and for all?
No. Banks are gradually coming to the understanding that refusal to cooperate with individual entrepreneurs, business owners, and self-employed individuals means the loss of a significant part of their profits. Increasingly, the presence of a stable income is confirmed in ways other than 2-NDFL. It could be:
- current account statement. It includes wages or profits from any type of activity permitted by law;
- an agreement on the rental of property (apartment, land, commercial real estate) in combination with payment orders confirming receipt of money from the tenant;
- tax return. Option - for individual entrepreneurs. A general or simplified taxation system is preferable;
- certificate in the form of the bank. This method of confirming income is useful for those who work in a branch or remote unit. If the accounting department is located in another city or country, salary data is printed on the letterhead of the employer or creditor with mandatory certification by the responsible person;
- statement from a brokerage account if the source of income is the stock exchange. It indicates the securities owned and the amount of dividends received.
It is possible to obtain a mortgage without official employment. Banks offer to receive a certain amount to buy an apartment, often without any confirmation of solvency. In practice, these are higher interest rates, smaller amounts and financing terms. An exception is for existing clients of banking structures, holders of current accounts or deposits, persons who are able to provide liquid collateral in addition to the property being purchased or make a down payment of at least 50% of the cost of the apartment or house.
Recommended article: Mortgage with a residence permit in Russia: banks and conditions
How to save for an apartment with a salary of 20,000, 30,000, 40,000 rubles per month + examples
Unfortunately, the housing issue in Russia is quite acute. Many people want to live in comfortable apartments, but due to working conditions they cannot afford it. After all the tips described above, we suggest that you familiarize yourself with the savings plan for a period of 5-10 years. During this time, it is quite possible to create your own business and grow it to the required volume.
Follow the advice from the first paragraph of the article. To accumulate, you must first change your thinking and perception.
Start with planning
You cannot put things off until tomorrow, for a week or a month. If you act, then only immediately and without stopping. In the coming week, choose the direction in which you will develop:
- media (Internet, YouTube, social networks);
- investments (IIS, trading);
- career/additional skills (programming, SEO, freelancing, marketing).
No one forbids trying in all areas, but the greatest success is achieved by a person with a narrow specialization of his activity.
After determining the general vector of development, clarify your specialization and ways to generate additional income: what channel will you develop or what stocks will you invest in.
1 year - we start and get used to the pace
To make sure of the idea, let’s carry out planning with a salary of 20,000. The experiment involves a family without a child, both spouses work 40 hours a week and can afford no more than 2 hours a day for their business (in the evening after work) + weekends.
The total income is 40,000 rubles and 30 of them goes on food, clothing, payment for services, etc. Only 10,000 are free per month. These are the minimum conditions for starting that must be provided. Let’s say you have to move in with relatives and give up all paid services.
In addition to his main job, my husband decides to run a YouTube channel + Instagram + blog. The first month he studies the field, gains knowledge and plans content. He sets aside 5,000 monthly for development (advertising, copywriters, equipment).
The wife decides to start freelancing. The first 3 months he studies long and hard, but his efforts do not pay off. Subsequently, she recruited her customers and is now recouping her costs.
By the end of the year, the family had become accustomed to this pace of life. As a result, the husband brings in an additional +30 thousand, and the wife too (in a year you can reach such figures).
Year 2 - expanding
If the start was successful, now we need to expand the scope of our activities. The excess 20,000 is invested monthly in IIS and shares of the company are purchased with a forecast of 12% stable per year.
- 20 thousand monthly = 240,000 per year
- 12% dividends = 28,800
Additional income has now become the main area of activity (this happens often). And now the family can afford higher-paying jobs or continue to develop as entrepreneurs.
Freelancers with extensive experience are often invited to young companies for a good salary. They can agree or continue their hobby.
3-5 year
After 3 years, you can receive a tax deduction on your IIS. There has already accumulated approximately 1 million + tax exemption. You can buy a one-room apartment or continue saving.
Margins of error
In the above calculations, we took an example with a minimum salary of 20,000. If spouses receive a total of >100 thousand, then the time frame is different and they will achieve their goals faster.
But this does not change the essence of the plan. In the first year, spend time and money on expanding your basic income so that you have something to save from.
