If you carry out an activity in your free time that generates extra income or if during the year you have spent it saving, we want to help you not to spend it in your hands full and reflections on the importance of allocating part of your personal finances to one of the projects that generate the most investment: equity.
Ideas to allocate your extra income
At La Haus we share 5 ideas so that this year this extra money does not fade away and you can see it reflected in your future.
1. Save for the down payment of your house
You may think that the extra money does not represent a significant amount for a down payment on a house, but this amount can be supplemented with the savings account or the distribution of profits in May. The idea is to start with an amount greater than what you could take from your monthly salary so that you motivate yourself to keep saving.
Remember, keeping your money under a mattress means, in addition to risk, the opportunity cost of not growing it. So our suggestion is that for this amount that you reserve for your down payment, you invest in a financial instrument that gives you returns.
- Planning your personal finances: How are your saving habits?
2. Improvements in your home
Are you thinking of selling your house, but it is not in the best condition? Would a little remodel give it a better view? Allocating a part of your extra income to make improvements will allow you to increase the value of your property in the market and therefore it is a profitable investment.
The recommendation is to invest in remodelling the bathroom and kitchen, as they are the key places for home buyers, the areas in which they focus their attention. Therefore, they are the ones that add the most value, you could increase the value of your house by 10 to 15 percent.
3. Advance payments on your mortgage credit
Paying extra money to your mortgage can save you a lot of interest and time in debt since it is money that goes to capital, the amount on which your rate is calculated.
The interest reduction will be more significant if you make additional payments in the first five years of the loan; But since interest is paid throughout the life of the financing, your debt will always lower by advancing monthly payments.
4. Acquire technology that generates savings
When it comes to tangible benefits, how about investing in something that reduces your electricity, water or gas bills? A good option to spend your extra income is to allocate part of it to change toilets with a lower load, equip sinks and showers with energy-saving faucets, solar heaters, high-efficiency air conditioning equipment, or even equip the house with insulated walls and ceilings. Thermal.
5. Preventive maintenance
Doing repairs before your home reaches a more critical state will save you a lot of money. Some of the preventive maintenance tasks for which we can set aside a percentage of the income are: varnishing windows, floors or any wooden structure, painting the walls, waterproofing and checking water, gas or short-circuits leaks in the electrical installation.
Having extra income is exciting, but don’t get carried away. Think that you will be happier when you see how a well-made decision gives you gifts for life: peace of mind, security and wealth. At La Haus we are focused on you having the highest return on your real estate investment. You know that with us you can find the best projects for your initiatives in return on investment.