10 Simple Ways to Save For a Down Payment
“If only I could afford the down payment, I could buy that home.” Don’t go down that road!! Scratching together a down payment is probably the most daunting hurdle to buying a home. Do not despair! Here are 10 easy ways to help you save, that won’t get you down.
Open a dedicated account – If you don’t have a savings account, now’s the time to open one. They don’t call them savings accounts for nothing – there is a psychological benefit of having a specific place to stash your down payment. It’s great to have a dedicated account where you can see how you’re progressing toward your goal.
Cancel the cable – you could replace your cable with a much less expensive streaming account like Netflix for $10/month (or a free library card!) and save at least $1,000 and likely more, depending on your cable package.
Cut that languishing gym membership – at $50 per month, you’d save $600 in a year.
Pack a lunch – if your average lunch costs $10.00 – that’s $50 per week and $2700 a year – or if there are two of you $5,400 annually!
Round your purchases – up to the nearest dollar when balancing your checkbook – according to some you can save up to $700 using this trick.
Turn down your thermostat – just 3 degrees could shave almost 10% off your electrical bill, netting you $20 a month on a $200 bill, or $240 a year.
Quit drinking – if you go out just twice a week and order two $10 cocktails (or four $5 beers) plus a $3 tip. That adds up to $2,400 per year!
Lay down the latte – A medium latte costs about $3.65. If you get one every day on your way do work – that adds up to about $950 (plus taxes) per year. That’s a latte savings!
Have a garage sale – this can earn you some cash and have the added bonus of preparing you for an easy move into your new home! How much you make will depend on how much stuff you have – but you could clear $300 – $800 or more!
Automate your savings – just go ahead and have a set amount of money deposited into your savings account every month. You can have your employer deposit it directly into your savings, or set up an automatic transfer at the bank. I bet that you find that you never miss the money!
If you implement all of the suggested tips, in a year will have saved over $11,000. That’s enough to purchase a $200,000 home and put 5% down or a put 3.5% down on a $281,000 home! That’s nothing to get down about!
When it comes to the down payment, you have options. Give me a call today to talk about what makes the most sense for you!
This is Part 2 of a series. Click here to see Part 1, click here to see Part 3