Saving More For A Downpayment

For many first-time buyers, saving for a down payment is a critical step on the road to becoming homeowners.  While people who have previously owned a home often use the proceeds from the sale of their homes to finance the purchase of a new one, they also change the way they spend money, if only temporarily, in order to save it quickly.  Saving for a down payment can be a challenge.  The information below offers tips to help you turn saving into a habit; one that will last even after you’ve bought a house well into your home-owning future.

Here are time-tested tips to help you save more.

1. Limit spending on luxury or non-essential items.  It’s tough to sacrifice the luxuries you love to save for a big purchase, but you’ll be surprised how much you save.  Visualize your new home every time you are tempted to spend money on luxuries, like a spa day or nonessential items, or other expensive extras, and put that cash toward a down payment.  

2. Spend less on entertainment. Saving money doesn’t mean you have to sacrifice your entertainment budget. Instead of splurging on restaurants several times a week, cook at home or take a cooking class.  You’ll learn new skills and improve the ones you have, while making a great meal in the process.  If you like going to movies, rent one online from M-GO (on Smart TV and Roku), which often has movies still in theaters for a lower rental rate than buying a ticket.  There’s always an alternative that let’s you have fun while saving.  

3. Cut your clothing budget. Instead of splurging on new clothes at the mall or whenever an email announcing a sale pops into your inbox, take a second to think about why you’re saving money in the first place. Set aside a clothing budget at the beginning of the month—when the money is gone there’s no more shopping for the month. Discipline shows real results.  

4. Postpone a vacation. Many first-time homebuyers put off taking an expensive vacation while saving for a down payment. Instead of going somewhere exotic or far away, head somewhere closer for a long weekend. Or, rediscover the sites of your city or town. You’ll save money and still enjoy the benefits of time away.  

5. Avoid an unnecessary purchase.  Do you really need a new car right now?  Try to postpone making large purchases until after you’ve bought a home, and you’ll get in to your new home that much quicker.  

6. Think about a second job. If you’ve cut or limited your spending as much as you can and would like to save even more money, you might consider getting a second job.  Brush off the bartending skills you honed in college, teach a class at your local community center or start a side gig as the neighborhood dog walker.  That extra money you earn is pure down payment bonus money.

© 2016 Buffini & Company. All Rights Reserved.

Want to read a hard copy of this article?

Our Recent Listings

 
The multiple listing data appearing on this website, or contained in reports produced therefrom, comes in part from Metropolitan Regional Information Systems ("MRIS"). The information provided is for the viewer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties the viewer may be interested in purchasing. All real estate listings include detailed information about them that includes the name of the listing brokers and therefore may reference real estate listing(s) held by a brokerage other than the broker and/or agent who owns this web site.

All listing data, including, but not limited to, square footage and lot size is believed to be accurate, but the listing agent, listing broker and respective Multiple Listing Services and their affiliates do not warrant or guarantee such accuracy. Therefore, all data should be personally verified through personal inspection by and/or with the appropriate professionals. Listing data last updated 7/20/19 11:07 AM PDT.

The listing information on this web site is from various brokers who participate in IDX.

Copyright 2019 MRIS. All rights reserved.

This IDX solution is (c) Diverse Solutions 2019.