Simple Things You Can Do Every Day to Save for a Down Payment
If you’re considering becoming a homeowner, you need to make sure that you’re first going to be able to make the down payment. Down payments can be challenging to meet, especially if you’re a first-time buyer and have no real reference for the percentage you’ll need to put down. However, if you’re serious about buying a home, then a few simple changes can help you save up over time so that you can buy your dream home. It’s all about setting a goal and sticking to it.
So, how can you go about saving for a down payment? It starts with making some seemingly small changes to making bigger savings plans. Here’s what you can do:
- Cut back on small spendings – When it comes to savings, every penny really does count. It may not seem like much at first, but every dollar you save adds up faster than you may think. So, look at your expenses, and find what you can cut back on.
- Set up a high-yield savings account – Set up a high-yield savings account just for your down payment. Set up an automatic transfer from each paycheck that you get so you don’t even have to think about it.
- Track spending with an app – These days, there are lots of great apps available to help with financial planning. They can help you track spending and savings so that you can better visualize your progress as well as your unnecessary expenditures.
- Pay off debt – Focus on paying off high debt, like credit cards, one at a time. As your monthly debt payments start to come down, you’ll start to have cash free up that can be put into your down payment savings account.
- Don’t spend your raise – Instead of spending your hard-earned raise, put it directly into your savings account.
- Save lump sums – Whether you receive a tax refund or have lottery winnings, make a point to put all extra earnings straight into your down payment savings account.
- Look for extra income – Consider getting a part-time job or starting your own side hustle to make a little extra cash you can save for your down payment.
- Plan a staycation – Instead of splurging on an expensive vacation this year, make a commitment to stick to your goal by finding fun and inexpensive, even free, things you can do in and around your home.
- Host a yard sale – Most people have all kinds of things sitting around their home that they don’t use or need anymore. So, host a yard sale or a virtual yard sale to make a nice profit.
- Downsize – If you want to save big, maybe it’s time to think small. Consider decreasing your current living space for something a bit smaller with cheaper rent. Making this sacrifice for a short time can help you save in a big way for your own place where you can put down some permanent roots.
- Get a roommate – If you’re currently living alone but have enough space to share, consider getting a trusted roommate to help reduce your monthly housing expenses. Then, you can save the difference.
Every little thing you can put away into your “do not touch” savings account will add up over time. If you’re serious about meeting your goal, it just takes a little discipline, and soon you’ll be able to buy your dream home.