How to Save for a Down Payment on a Home

Home on a Stack of CashSaving for a home is a trade off. The money you sacrifice to go into your savings now will result in the pride of one day owning a home. Here are some ideas on how to save for your first home:

Rent a Cheaper Apartment
If you’re paying 30% of more of your income for rent, think about moving to a more economic apartment. If you live alone, consider sharing your apartment space with a roommate to help with expenses.

Look at Your Budget
Study your monthly expenses to see what can be cut. Perhaps the expensive gym membership can be swapped out with a more economic one. If you dine out frequently, think about bringing your lunch to work and make restaurant dinners a rare treat. Do not plan that big vacation – opt for a more economic way to spend your time off.

Are You a Shopper?
If you have a habit of shopping, restrain yourself. Buy only what you need – not what you want. Remember, your goal is to own a home.

Relocate
If you live in an expensive part of town or city, consider moving to a part of the country where housing is affordable.

The Car
Don’t purchase an expensive car. That large monthly payment could be going into your house fund.

Automatic Savings
Have a dedicated savings account and instruct your company’s payroll department to send a fixed sum to that account. And, if you have any “windfall” bonuses or money come your way, be sure to deposit that money into your savings account.

Work More
By adding a side project, odd job or overtime to your work schedule, you can build your savings more quickly.

 

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