Saving 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.
If you live in an expensive part of town or city, consider moving to a part of the country where housing is affordable.
Don’t purchase an expensive car. That large monthly payment could be going into your house fund.
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.
By adding a side project, odd job or overtime to your work schedule, you can build your savings more quickly.