Home Buying Plan for Salary Workers: Buy Rationally, Avoid Financial Stress
The reality of buying a home
Home buying is the largest financial decision for many salary workers. The key is avoiding over‑leverage.
Before you buy
- Emergency fund is ready (3–6 months)
- Debt is under control
- Stable income and job outlook
Key ratios to watch
- Monthly mortgage ≤ 30–35% of take‑home pay
- Total debt payments ≤ 40% of take‑home pay
- Down payment should not drain your emergency fund
Hidden costs
- Taxes and maintenance
- Property fees
- Renovation and furnishing
- Opportunity cost of tying up cash
A practical decision flow
- Estimate total monthly cost (mortgage + maintenance + taxes)
- Compare with rent + savings potential
- Stress test: could you afford it with a 20% income drop?
Mistakes to avoid
- Buying at the maximum loan limit
- Ignoring maintenance costs
- Assuming constant income growth
Quick checklist
- Mortgage ≤ 35% take‑home
- Emergency fund intact
- Stress‑tested with income drop
- Total cost calculated
Disclaimer
This article is for general financial education and information only and does not constitute investment, insurance, tax, or legal advice. Please make decisions based on your situation and consult professionals if needed.