Is saving enough to buy a home on your list of resolutions? Buying a home is likely the biggest purchase you’ll make in your lifetime, and one that can seem overwhelming. That’s why we put together a few tips to help you reach your goal!
If you’re starting at zero and your goal is $60,000, that amounts to $5,000 per month for 12 months. This is not a challenge to take lightly. You’ll have to make some serious cuts in expenses if you want to achieve your goal in one year, but it is possible.
Move In With Friends or Family
Slash your rent payment by moving in with family or friends while you save for a down payment. Offer to do work around the house to further reduce costs. Mowing the lawn, cooking and cleaning, child care, pet sitting — any mutually beneficial arrangement you can work out to reduce or eliminate rent payments can help you put away a sizable chunk of change each month.
Sell Non-Essential Assets
If you want to save for a down payment and you’re currently paying a car payment, consider selling your vehicle and purchasing a basic ride to get around until you’ve purchased your dream home and can afford to pick up another car payment. Sort through other belongings such as clothing, housewares, books and electronics. Sell your stuff at a consignment sale, in a garage sale or online yard sale.
Cut the Nice-to-Haves
Cable, Internet, Netflix, etc. – while these little luxuries are nice to have, they’re just that. Not a necessity. Reduce your monthly expenses by cutting ties with your TV service, Internet provider and any other utilities you can live without. Doing so could net you anywhere from $50 to $300 a month, or more, depending on what you’re currently paying. Now’s also the time to talk to your cell phone provider about downgrading, to a basic, more affordable mobile plan.
For the next 12 months, ask yourself, “Do I need this?” If the answer is “no,” don’t buy it.
Pick Up a Side Gig
It’s time to add a new word to your vocabulary: Hustle! Look for ways boost your income with a second job or side gig. Start by thinking about the things you already enjoy doing. Pick up a job tutoring students, walk neighborhood dogs, referee youth sports leagues, substitute teach – these are just a few ways you can start earning extra income to help you reach your savings goal in a year.
During this year of hard core savings, you’ll need to learn how to say “no” to most social invitations. While you might miss that annual weekend getaway with the girls or playing a round of golf with the guys after work, skipping out on these splurges can easily help you save several hundred, if not a few thousand bucks over the course of a year.
When you’re ready to buy your home, be sure to contact a PrimeLending loan officer to get started!