Renting a home is not always the end goal for a lot of people. While renting is convenient and easy, buying your OWN home is something special! While there is no pressure on exactly when to buy a home, take this time to save up for a down payment. Waiting and taking your time to save up enough money for a down payment will help with financial and mental stress by making sure that you can put a sizeable down payment on your home, buy new furniture and still pay your bills on time!
Here are some tips on saving for a down payment on a home:
- Set a Plan – know exactly how much you are saving up for as a goal. Plan to put at least 10% of your new home’s price as a first goal but putting more down means that your monthly mortgage payment will be less. The higher your down payment is, typically the lower your mortgage will be!
- Cut Some Expenses – some expenses you probably have that you could find cheaper alternatives for include gym memberships, eating take out, cable television, excessive grocery shopping, and more. By cutting these expenses you could save yourself hundreds of dollars a month, which will add up fast!
- Boost Your Income – Picking up a side job for some extra money can go directly into your savings account for that new house! Walk the neighbor’s dogs, mow their lawns, referee sports games on the weekends, offer tutoring to students, or pet sit! There are a lot of easy options you can do on the side to help save yourself more money.
Saving for a down payment on a home takes commitment. It is not easy and will take a year or more to grow a decent savings. Because you work so hard on your savings, the last thing you want to do is make a detrimental financial decision. Choosing the right, experienced real estate agent and financial establishment will help you along this whole process. Your home is not just your home, it is also your largest financial investment!