Tips & Tricks – Saving for Your Down Payment
My husband is an accountant.
Another Fun Fact:
I am not a “Saver”
[Insert Gritting Teeth Emoji]
Saving money is can be a very crucial first step to purchasing your dream home. Sure — there are city programs for first time home buyers, but sometimes those programs run out of funding or you may not qualify for down payment assistance. Then what?
Ergo Mission: Save Mo’ Money
If you are like me, saving money can be hard! But hopefully these little tips and tricks can help you bite the bullet — it’s worth it! Trust me!
1. Limit Spending on Luxury or Non-Essential Items
It’s tough to sacrifice the luxuries you love to save for abig purchase, but you’ll be surprised how much you save.Visualize your new home every time you are tempted tospend money on luxuries, like a spa day or nonessentialitems, or other expensive extras, and put that cash towarda down payment.
2. Spend Less on Entertainment
Saving money doesn’tmean you have to sacrifice your entertainment budget.Instead of splurging on restaurants several times a week,cook at home or take a cooking class. You’ll learn new skillsand improve the ones you have, while making a great mealin the process. If you like going to movies, rent one onlinefrom M-GO (on Smart TV and Roku), which often has moviesstill in theaters for a lower rental rate than buying a ticket.There’s always an alternative that let’s you have fun whilesaving.
3. Cut your Clothing Budget
This…this hurts the heart a little. 😉 Instead of splurging on newclothes at the mall or whenever an email announcing asale pops into your inbox, take a second to think aboutwhy you’re saving money in the first place. Set aside aclothing budget at the beginning of the month—whenthe money is gone there’s no more shopping for the month.Discipline shows real results.
4. Postpone a Vacation
Many first-time homebuyers putoff taking an expensive vacation while saving for a downpayment. Instead of going somewhere exotic or far away,head somewhere closer for a long weekend. Or, rediscoverthe sites of your city or town. You’ll save money and still enjoythe benefits of time away.
5. Avoid an Unnecessary Purchase
Do you really need anew car right now? Try to postpone making large purchasesuntil after you’ve bought a home, and you’ll get in to yournew home that much quicker
Even if you feel that you are far away from your first or another home purchase, the faster you implement little tricks like these, the better position you put yourself in to be able to make quick decisions in a hot market!
As always — I am here to provide value. If you or anyone you know has real estate questions, please contact me. I would be happy to follow up & take great care of them.