Saving for a down payment on a new home can seem like a far-off distant dream that you can’t quite reach—especially if you don’t have a plan. Once you know how much you can afford, you can start strategizing and executing your to-do list to attain your goal of homeownership. Here are a few saving tips you can add to your plan.
Know Your Budget
It may sound simple, but do you really know where your dollars are going? Review the bills that you pay every month. Separate them into essential and nonessential bills. Identify all areas that you could cut back on. You may have to say goodbye to that gym membership and work out at home, but don’t worry. These adjustments are temporary and can be restored once you’re in your new home.
Are you in a position where you could live below your means for a while? If you have an extra car or the ability to take public transportation everywhere you go, consider selling your ride. Depending on the condition of your car, that could put a nice chunk of cash in your pocket. You may want to even consider moving into a smaller place for a while. Think about moving into a smaller apartment where rent and amenities may be more economical than what you’re currently used to.
Evaluate Your Career and Salary
Are you due for a raise? Go for it! Evaluate the years you’ve put into your current place of employment and the value you’ve brought to the company, and have a meeting with your manager. It’s wise to properly prepare when meeting for this type of request, so do your homework. If they aren’t able to give you more money at your current job, maybe it’s time to look for a new, higher-paying one. Check out the job market and see what’s out there that would get you to your goal faster. If that’s not an option, consider a side job to build up extra income.
Plan a Staycation
Vacations can be expensive. You can spend thousands of dollars to get away from it all. Saving for a down payment may not be the best time to splurge on travel. You can still satisfy your need for rest and relaxation right in your own city by saving on the money you would have spent on flights, hotels, and exotic excursions.
Saving for a home will take time. Plan now for the future you desire. If you’re a first-time buyer looking to get into the market, check out our first-time homebuyer checklist to help you plan. Connect with one of our 8,000 agents today to help you take advantage of the market. To find out what you can afford, check out our mortgage calculator to help estimate your monthly payments. For local listings you can trust, start with REIN.com.
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