How to start saving for your dream home in a systematic way

Your dream home is not just a brick and mortar construction. It is the fulfilment of your long-cherished ambition of standing tall alongside your friends and acquaintances whose homeowner status you had always envied. To set foot in your lovely home, you need to plan your finances carefully so that your savings are adequate for making the initial down payments.


How to Save For Your Dream Home Plans?

You need no longer strain your nerves for figuring out avenues for saving systematically. This blog would guide you through easy ways to build a corpus to fund your first home.

Invest in ELSS

ELSS or Equity Linked Saving Schemes spell numerous monetary benefits for you. Investment in them allows you to save taxes to the tune of INR 1.5 lakhs per annum under Income Tax Section 80C. Further, the schemes are linked to stock markets and assure a guaranteed return of 15-18% per annum.

They have a minimum lock-in period of 3 years which ensures that your money remains in growth mode without being eaten away by trivial needs. Further, you can withdraw the accumulated fund to your bank account with just a few clicks.


Visit a Financial Planner

You may not be aware of numerous leniencies in tax laws which you can exploit to regularly save a significant amount of money. Visiting a financial planner would provide you with insights about the same. 

For example, if you are earning additional income apart from your salary that is liable to be taxed, you can save the same by depositing secondary income in Hindu Undivided Family (HUF)’s account. The HUF status can be availed of by Hindu, Jain, and Sikh householders residing in India. 

For this, you have to open a separate bank account and link the same with PAN issued in the name of your HUF. HUF is a distinctive entity for IT department and as such additional income is exempted from taxation. Dream home images taking shape in your visualizations can be transformed into reality with similar such money-saving tricks.


Avail of Meal Coupons

Buying groceries and shopping for toiletries as well as other staple household needs is something you cannot do away with. But do you know that you can save money on these exercises by availing of meal coupons? Yes, meal cards issued by your employer can be filled with a certain amount per month for availing of exemption from income tax.

Paytm, Sodexo and other companies issue meal cards which are similar to debit cards. Top the card up with amount eligible for tax incentive per month and this amount would be deducted from your salary factored in for tax calculation. You can save significantly every year without skimping on your needs. Now make dream home come within your reach with such realistic money saving methods. 



Avail of Subvention Schemes Floated by Builders

I had got the keys to my dream home through subvention scheme of the builder. I didn’t have to commit a large sum upfront for this. First, choose a builder with a reputation for delivering projects on time. Next, apply for a home loan from your bank. The bank issues the initial instalment of the loan which you hand over to the builder for starting the construction. This usually amounts to 10-20% of the total cost.

The builder upon receiving the amount agrees to pay the loan EMIs to your bank for a specified period. You can save significantly on the home cost by not having to bear the EMIs during the subvention period. Further, you also get sufficient time to arrange for the next installment payable to builder after the specified period.



I have discussed some effective money saving tips which can certainly land you on the doorsteps of your dream home soon.  These tips don’t require you to scrimp on your basic lifestyle expenses. Your dream home design is just a few savings away!!