Save Money for a Down Payment

Save Money For a Down Payment

Many renters dream of owning their own home. They  would love to paint the walls, make repair decisions, and gain equity with their monthly payments. Unfortunately, many renters cannot afford a down payment. According to a survey we found, 62% of Americans have under $1,000 in savings. Here are some tips on how to get yourself out of renting and save up for a down payment.

Talk to a lender and you know your goals

Call a great local lender – if you need one call us for recommendations – and find out how much home you can afford. Once you and the lender come to an agreement on what you can afford, set a hard goal and start saving.

Get a side gig

Find a side job such as Lyft, Rover, Instacart, or even a part-time job at a local restaurant or retail store. Put this money into a separate account so you cannot easily access it. This can add up to be a big portion of your savings.

Save your tax refund

As tempting as it may be, do not spend it! Simply put it away and pretend it no longer exists. You will thank yourself later when you become a homeowner!

Open a high-yield savings or money market account

All the money you are saving, put into an account that earns interest. Over time, that earned interest really adds up. By opening a different account, it also makes your money harder to access therefore resulting in you not spending it.

Drop the monthly memberships

Many people have memberships that are never used! Drop the monthly memberships to gyms, tanning salons, or other clubs you belong to that you don’t use regularly. It’s actually cheaper, in the long run, to buy a treadmill than to pay monthly gym fees.

Check your spending habits

Print out your bank statements and review them. It’s best to print them so you can truly analyze your spending. Highlight unnecessary expenses and start to cut back.¬†With these tips in mind, you should be able to cut back your spending and save money for a down payment in no time! We wish you luck, call us to start your home buying process!

 

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