Small Steps to Take Everyday When Saving for Your First Home
Saving for your first home calls for a lot of work. From tweaking your budget to researching mortgage programs, taking these important steps will help you achieve your home-owning dreams.
And when it comes to financing your house, a hefty down payment goes a long way towards reducing one of the most important types of debt you’ll incur in your life.
These tips will help you save the amount you need to meet your lender’s requirements and reduce your mortgage payments and balance.
The Latte Effect
We’ve all heard about the impressive savings you can achieve by skipping the morning latte from your neighborhood coffee shop.
But if that latte is the spark you need to get your day going, consider cutting from areas of your budget that won’t cause much pain.
Comb your bank and credit card accounts for subscriptions and memberships that are rarely or never used.
Next, write down everything you spend money on in a given day.
If you see lots of restaurants, consider alternatives like meal delivery subscriptions and ready-made grocery-store meals.
While more expensive than many homemade meals, they offer the convenience of meals out at a much lower cost.
And with their pre-set portions, these meal options prevent food waste.
Help from “Found” Money
Look for money in unexpected places. Cut your power bill — and enjoy the ultimate in online security — by turning off your router or modem when you’re gone or sleeping. Unplug appliances when not in use; power strips make easy work of shutting off multiple devices.
Eating seasonally will help you trim your grocery bill while enjoying the freshest produce. Cook seasonally, too; opt for cold salads, or whip up an Instant Pot meal to avoid turning on the oven in the summer.
Fire up the oven during the cold months to stave off winter chills and dine on roasts or other cozy, warming dishes.
And when birthdays, Christmas, anniversaries or other gift-giving occasions roll around, ask for money when prompted by close friends or family members.
If you can’t bring yourself to request cash, gift cards can also help boost your budget.
The money you would normally spend at gas stations, restaurants or clothing stores can now be put in your down-payment fund.
Make buying a house easier with these tips for raising a down payment.
From cutting expenses that don’t bring you joy, to enlisting the aid of family and friends, you have plenty of money-saving strategies at your disposal.
Your, and their, efforts will be rewarded with the satisfaction of knowing they paved the way for a new life in your first home.
Category: Housing
