We promise that you’re not alone if you feel like saving up for a home is a little overwhelming. However, don’t ever feel like its impossible. Saving for your dream home is no easy task, but with patience and hard work, it is absolutely achievable.
What does your dream home look like? Visualize it and let that be your motivation everyday. How much do you need to save for your down payment? Let’s make a plan to help get you there! These tips are quite simple, and over time you won’t believe how much money you’ll already have to put aside for your new home.
Follow these saving tips to help you save up for your dream home in as little as twelve months!
1. Adjust Your Monthly Priorities
Take a look at your monthly spending and cut out what you absolutely do not need. Before you make any large or out of the norm purchase, ask yourself if you need it or just want it. Consider the benefits of disciplining yourself and embracing minimalism. If purchasing a home in the near future is a TOP priority for you, then you have to discipline yourself to avoid splurging on the newest phone, car, purse, etc. Take some comfort knowing you can afford to spend a little more on yourself once you’re moved into that brand new home!
2. Little Expenses Add Up
Another part of decluttering your monthly budget is replacing your current subscriptions with cheaper plans or foregoing them completely. Use free Pandora instead of Spotify. Replace that $100 cable bill with $10 a month Netflix.
Research reward plans or discounts available for your favorite services.
Do you need that daily $5 coffee? Buy a cheap coffee pot and make your own at home every morning! Instead of making that $200 a month trip to the hair salon, color your hair at home. This “do-it-yourself” approach saves hundreds each month and brings you one huge step closer to purchasing your dream home!
3. Consider a Side Job
If budgeting plus your current monthly income still doesn’t help you meet your financial goal, consider picking up a side gig. Find something that works around your schedule and dedicate every paycheck straight to your savings. In just 12 months, you could have up to$30,00 – $50,000!
This second job isn’t always fun or convenient, but is well worth the work. A recent survey found that 1 in 5 Americans has an extra way of making money alongside their regular job/income. More than a third of them said they made a minimum of $500 extra a month doing so.
4. Set Up An Automatic Savings Plan
Most of us by nature aren’t the best savers. It’s a trained habit that gets better over time. Thankfully, there’s an automated savings plan at your bank that can take a percentage or dollar amount from each paycheck for you. This removes the temptation to spend that money on something else.
To learn more about automatic savings plans click here!
5. Clean Up Your Credit
Your credit score is just as important as saving up for a down payment. If you have little down, but an immaculate score, we are able to still help you get into your dream home with a lower down payment, and with a great rate. It’s important to learn how to efficiently pay off your credit cards and any other debts burdening you financially. Learn more about how to improve your credit to qualify for a home here.
Watch this video to learn about one of the best ways to improve your credit
With the right mindset and realistic financial goals, saving up for a down payment is totally achievable. Start a smart savings plan today using these saving tips and get that much closer to your dream home!
Qualifying for a mortgage is easier with our team of experts. We love what we do and enjoy helping others move into their dream home!
Call us to get started: 480-832-4343
References:
https://www.trulia.com/blog/how-to-save-for-a-house/
https://www.usatoday.com/story/money/personalfinance/2014/09/14/home-mortgage-save-budget/15466845/
http://www.thesimpledollar.com/buying-a-house-how-to-save-for-a-down-payment/
