You have decided it is time to stop renting and buy and house. You have met with a lender and know what closing costs will be and how much will be needed for your down payment. Now you are trying to figure out how in the world you will ever save that money. Here are 10 ways to save some money for that down payment.
- Start by using a budget. Follow the budget that you set, be disciplined.
- Stop those expensive habits. For example, stop buying the daily expensive coffee. Do the math. If you spend $5.00 on coffee 5 days a week, that is $100 per month and $1,200 per year.
- Cancel unused subscriptions for products and services. Don’t sign up and forget it. They cost you money. Review your bank and credit card statements to ensure that you have canceled those that you do not use.
- Drop entertainment costs and eating out at restaurants. Both of these can really eat away at the money.
- Take a break from the gym. This is particularly easy in the warm weather months when it is so easy to get outside and enjoy activities that are virtually free. That can save you $60 or more a month.
- Shop for new car insurance. Insurance companies compete to win your business but do not reward your continued loyalty. By checking rates, you can save over $500 per year with a new company and policy. Remember to check what the savings will be when you add homeowner’s insurance. Check the zebra website for comparisons. You do not have to make all of the phone calls yourself.
- Pause the retirement savings. I am not saying forever, but just until you have the money saved to buy your home.
- Declutter and sell those unneeded items that are sitting around just collecting dust. Sell the bike you never ride. The golf clubs you thought you would use. The clothes that are still in style that you do not like.
- Another way to get some extra money is not by saving but instead by getting a side job. Do something you enjoy, but get paid for doing it. You could do a real part time job, but you also could walk dogs or pet sit for friends. Just dog sitting can bring in $50 per day. You don’t like animals…try tutoring children. You could also drive for Lift or Uber!
- Pay yourself first. When you get paid make sure that a certain amount goes into saving before any bill is paid. Remember once the money is in saving…be disciplined and leave it there!
If building a savings is something that you have not done before this may seem impossible…but it is possible and in no time, you can have the money for your down payment.