What Saving GH¢1,000 Every Month for Five Years Can Help You Build in Ghana

• Saving GH¢1,000 monthly consistently will produce GH¢60,000 after five years, excluding interest
• The amount could fund land, foundation, walling or finishing, depending on the owner’s starting point
• A modest design and a detailed cost estimate are necessary to prevent the project from stalling

Saving GH¢1,000 every month may not feel significant when viewed as a single contribution. However, maintaining it for five years will produce GH¢60,000 before interest.

The money may not complete a standard two-bedroom house from the ground up, especially when land is included. It can nevertheless help a disciplined worker reach an important stage of the building process.

How the money grows

After the first year, the worker will have GH¢12,000. The amount will increase to GH¢24,000 after two years and GH¢36,000 by the end of the third year.

The total will reach GH¢48,000 in year four and GH¢60,000 at the end of year five. Any annual bonuses, salary increases or interest earned can push the amount higher.

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Because building costs change, keeping the entire fund in an ordinary account for five years could reduce its purchasing power. The money could be kept in a suitable interest-earning savings or investment product, depending on when it will be needed.

The Ghana Statistical Service uses its Prime Building Cost Index to track changes in the cost of building materials and other construction inputs.

What GH¢60,000 could cover

For someone without land, GH¢60,000 could be used to acquire an affordable plot in a developing community. However, the buyer must also budget for surveying, verification, legal documentation and registration.

The Lands Commission provides online land services and a bill calculator that can help applicants estimate some official charges.

If the worker already owns land, the GH¢60,000 can go further. It could cover professional drawings, permits, site preparation and the foundation of a small, expandable house.

Five-year savings and building plan

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The possible stages will depend on land ownership, house size, location and material prices.

Depending on the design, location and labour charges, part of the walling may also be completed.

A possible planning allocation would be GH¢6,000 for drawings, permits and documentation, GH¢21,000 for the foundation, GH¢18,000 for blocks and walling, GH¢9,000 towards roofing and GH¢6,000 as a contingency fund.

These are planning figures rather than fixed quotations.

For someone who already has a foundation, the amount could help raise the walls, install a ring beam and contribute towards roofing. It may also be used to make a small unfinished house habitable by providing basic doors, windows, wiring, plumbing and plastering.

The wisest approach is to choose a simple one- or two-bedroom design and obtain a bill of quantities from a qualified professional.

GH¢60,000 may not deliver a fully furnished home, but it can move a salaried worker from merely dreaming about building to owning land or completing a major construction stage.

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Cost of building four chamber-and-hall units

Previously, YEN.com.gh reported that four modest chamber-and-hall self-contained units could occupy approximately 160 to 200 square metres.

Completing the project with standard materials may cost between GH¢850,000 and GH¢1.25 million.

The estimate excludes the cost of land, furnishing, a fence wall, and other external developments.

Source: YEN.com.gh