6-Tips for Saving Your Down Payment on a House
Saving for a home seems like a monumental task. With a little guidance and some discipline, you can make it a possibility. Sometimes, you may qualify for low down payments or zero down. However, you’ll still need money for closing costs. We’re here to help with this guide, giving you some valuable details on how you can save for a home within 5-years.
Place Gym Membership on Hold and Get Outdoors for Fitness
Many of you may have already canceled or placed gym memberships on hold because of Covid. However, with the fitness centers reopening, Coloradoans are flocking to the doors of their local health clubs. Along with the memberships comes a hefty fee of $50 per month you’re averaging around $800 per year. Take your workout to the great outdoors and save for your down payment.
Starbucks Might Be Putting a Hole in Your Savings
Each day coffee lovers pull up to the drive-thru of one of their favorite bistros to start their day. While there’s no problem with splurging on yourself, places like Starbucks might put a hole in your savings. A caramel macchiato averages $4.75 + tip might run you over $5.00. Depending on how often you make a visit, this could cost you around $100.00 per month, which is outrageous if you are trying to save for that down payment. Make your coffee at home and put the rest in your bank account where it can grow interest.
Lunch Can Cost a Mint
If you’re saving for your home, making your lunch can help you with that down payment. With prices for things like meat and dairy, on the rise you may pay up to $10 per meal. Imagine eating out for lunchtime every day, you’re now up to $50 again. Brown bagging it is not only a money-saving tactic, it’s also healthier for you. It’s time savings as well if you plan. Don’t let your lunch cost you a mint while working toward your goals to save for a new home.
Contact Your Utilities Companies to See If There’s a Discount
Cell phone subscriptions, cable television and even your electric bill might have discounts you’re unaware of and should contact them to explore your options. Some cell phone companies offer lower rates if you add a line or if you change your monthly plan. Electric companies will not contact you, offering you a way to prevent overpaying. Be sure you call them, see if there’s a way for you to pay a set fee year around. You could save hundreds of dollars within the year.
Save on Auto Maintenance by being a Careful Driver
Believe it or not, the way you drive your car, truck or SUV can save you some bucks. When drivers with a lead foot mash the gas pedal and brake hard at stoplights, they’re not only abusing their poor auto, the maintenance is expensive. Not to mention, you burn more gas when speeding, which is taking away from your deposit.
Pay Yourself First
Personal finance is an absolute must as a potential homeowner. Many future buyers allow themselves a weekly or bi-weekly amount they automatically deduct from pay checks and add to them to the investment. Whether it’s $100 or $10, you’ll see this money quickly add up by paying yourself first. Everything else is secondary. This method works!
By following these 6-tips you’ll have the down payment savings in no time. Within a year, you could save over $1800 or more depending on your auto maintenance and utility savings. That’s a substantial amount of money. Adding it up means you’re likely to save $9,000 which might be what you need to buy your first home of a condominium.