7 TIPS FOR SAVING FOR A DOWN PAYMENT

So, you are thinking about buying a home? Wonderful! Buying a home can be one of the most exciting processes and also a bit stressful. Before you begin your home buying process you will need to save enough money for a down-payment. 

The good news is that there are many different down payment options available depending on the loan type you qualify for. The total amount needed can range from only 3% to a full 20%, and usually does not include the funds you will need for closing costs on your new home. 

Of course, the best first step to take when you are thinking about entering the home buying market is to contact a Realtor in your area! A Realtor can help you determine how much money you should be saving.

In the meantime, here are some fun ideas to help your piggy bank grow!

7 TIPS FOR SAVING FOR A DOWN PAYMENT

1.) CUT YOUR BILLS - Our monthly bills are one place where our money goes very quickly. Take a look at your monthly bills and see if you can cut down your overall cost. Can you switch from cable to free (or low cost) streamed TV? Going from a monthly cable bill to a monthly Netflix, HULU, etc bill may save you quite a bit. Is your cell phone plan due for a review? How about your car insurance? Often times if you call your service providers and let them know you are looking to save money, they will work with you!

2.) EAT DIFFERENTLY - A lot of people do not think about how much money they spend on food each month. Take some time to look at your spending habits and see if you can cut down on the number of times you eat out each month. Evaluate your grocery buying habits and see if buying in bulk, making bigger meals (left-overs anyone), or buying "generic" versus brand name goods will save you money! You may be surprised. 

3.) MONITOR YOUR USAGE - Are you making the best of your heating or cooling systems? Are you using programmable thermostats to ensure your house is kept at optimal temperature with the least amount of energy usage? Have you thought about keeping the house a bit colder in the winter and bundling up with those warm flannel sheets? How about using circular fans in the summer to avoid turning on the money-guzzling A/C. 

4.) HOBBY REVIEW - Part of enjoying our lives often times means we have hobbies. Whether it be attending yoga classes, doing arts and crafts, playing on a local sports team, or heading out on the weekends - these hobbies add up quick. Now, I am not saying to stop having fun, but, is there any way these hobbies can be slimmed down a bit? Perhaps try your yoga practice in a local park, invite your friends to a game of ball in your backyard, and enjoy weekends at home. Even though this may seem hard at times, it will be well worth it when you have saved enough money to buy your new home! 

5.) SELL IT - Many of us collect things over the years that are rarely used and not serving a purpose in our home. What things do you have in your home that you are no longer using? Have you thought about selling them? It is always amazing what people will buy, you know the old adage, one man's trash is another man's treasure. Well, find your "trash" and put it up for sale so someone else can pay you for their next treasure. Of course, if you are going to use Craigslist to sell, make sure you meet in a well-populated area and do not go alone. (I meet buyers INSIDE of a Starbucks or Target). 

6.) LOOSE CHANGE - Keep a big jar in your home and at the end of each day, put your loose change in the jar. Easy right? Well, here is another idea for those of us that don't often use cash, and as such, don't often have loose change. Check with your bank and see if they have a "round-up-savings" option. Some banks will offer to round up every purchase you make with your debit card and automatically transfer the difference into a savings account. This can really add up!

7.) USE YOUR MIND - Saving money, as with many things, is often "mind over matter". Try using your MIND to grow your money stack. For example, consider the amount you are going to spend based on your total income --- you love those $60 pair of shoes, but you make $15 an hour, is it worth it to you to work for 4 whole hours just to pay for one pair of shoes? Maybe ... but maybe not. Focus on short term savings goals rather than the whole amount. Just like losing weight, if you reward yourself at each increment, you will be more motivated to keep going and proud of yourself for a job well done.

Are you ready to start saving and text the next step on your home buying journey?  Feel free to contact me for help ... and for more tips!