Whether you’re a first-time home buyer or a long-standing homeowner saving for a down payment, here are ten tips to boost your savings quickly.
Eliminate extra expenses
Saving for a down payment will need to take precedence over other extra spending so it may be time to make some sacrifices. If you have monthly subscriptions you can do without, such as cable, movie streaming, automatic shipments for beauty boxes, coffee deliveries, or other extras, call and discontinue the service and set the savings aside.
Sell unused goods
Most people have made an impulsive purchase they don’t really need or have a gift they received but never used. Another way to set money aside for a down payment is cashing in on these goods.
Many second-hand clothing stores pay cash for clothing in good condition. Books, household goods, DVD’s and other items can be sold in online community apps, garage sales, or specialty stores that purchase these items outright.
Automate your savings
Whether you have a savings account or not, open a new account specifically for your down payment. Sign up for direct deposit and have a percentage of your paycheck deposited directly into this new account. Make it off-limits for everyday use. Opt out of a debit card that would make it easy to spend from this account.
By saving just a hundred dollars a month, you can have over a thousand saved in one year. Any other money saved from eliminating extra expenses or selling unused goods (see above) can be deposited into this specific account to watch your cash accrue even quicker.
Reduce your budget
Most budgets have room to give or take from certain areas. If you have a higher than necessary food budget, think of ways to temporarily decrease your spending. Add more inexpensive staples to your diet, such as beans and rice, to forego high-end meal items such as meat, fish and seafood.
If you have a clothing or shoe budget, make do with what you own and save the extra money you would have spent in this department.
If you have the option to work extra hours, take someone’s shift or add income in some other way, these are great opportunities to add to that down payment savings. If you don’t have these options, consider adding a second job.
Many retailers hire with flexible, part-time hours. Taking on a temporary job to reach a savings goal is a quick way to achieve your dream.
Cut bad habits
Whether it’s smoking, alcohol, candy, or coffee, many of our habits add up to a lot of extra cash. Make a decision to forego that favorite item and you may achieve more than one benefit – cash and health.
Put a hold on travel
Many Americans take multiple trips a year. They aren’t always elaborate, but they add up. To beef up that down payment, save the money you would have spent on gas, a hotel, eating out or other vacation expenses and put it into your savings.
Everyone enjoys dining out from time to time, but the reality is it is far more expensive than making the same meal at home. Instead of dining out, choose to eat in and save the extra money you would have spent. If you need to get out of the house, make it a picnic and take the food you prepared at home.
Get a roommate
If you have the extra space, get a roommate to help with monthly housing expenses and then put the extra cash into the down payment savings. Splitting water, garbage and utilities will decrease your share of expenses, too, increasing the benefit of adding a roommate.
Halt your retirement
There’s no doubt that retirement saving is necessary but for a short-term savings goal, halt your retirement saving and move the money to the down payment savings account.
Saving is never easy but making home ownership a priority will give you a reward that will last a lifetime. This is an investment that you will never regret so it’s time to roll up your sleeves and put in the hard work to achieve your goal.
If you’re currently searching for a new home, are ready to sell your home, or if you have any questions regarding Carolina and Sunset Beach Real Estate, please feel free to contact our office at any time.