Tips to save for your home purchase
Saving up for a home can feel daunting, but with a solid plan you will most certainly reach your goal of homeownership. Here are some strategies I’ve picked up that have helped many of my buyers build up the down-payment for their first home…
Build a budget. And stick to it! Go over each and every monthly and yearly expense, if you don’t know how you are spending your money, you will never be able to set enough aside. Once you’ve captured necessities, consider the nonessentials, like entertainment or eating out and set a reasonable figure. There are many apps out there to help you stay on track and identify areas you might be able to cut back on. Set a certain amount that you will be setting aside for your downpayment, make it a non-optional expense and set up an automatic transfer. Automating your savings is an excellent way to take away that option to overspend.
What can I cut/reduce? Try to practice minimalism while you are saving. Reduce or cut out a bad habit, stop impulse buying, eat at home, skip a vacation or even move to a smaller place for time being. You may find your inner chef or explore all the fun and FREE things your city has to offer. You will be surprised at how much you can save with just those changes; all those good decisions will add up quickly!
Make some extra cash. We live in the age of the side hustle and there are so many options out there to earn. Dog walking, food delivery, website & app testing or freelancing are some of the more popular ones. Selling items on sites like Facebook is also very popular – things around the house that you don’t need or free items you’ve picked up from various sources – can bring in a couple hundred dollars or more a month towards your goal.
Rent space. If you have an extra room, consider being an Airbnb host. If you are downtown you might have a parking space you can rent out. See if there is a way to leverage your current living situation to pad your wallet.
Leverage your employment. Maybe its time to ask for that raise that you deserve. Or a chance to go for that new job with a higher salary that you’ve been eyeing. Review your current situation to see if there are any opportunities for a little extra cash.
No matter what tactics you use to save, with a proper plan that you stick to, you will be enjoying your own home in no time…and I’ll be there to give you the keys! Visit me on Facebook and Google for more.