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5 Tips to Save for a Down Payment

March 15, 2018

You’ve decided it’s time to buy your new home and you need to start saving for a down payment. The following five tips will help you get on the right track:

1.     Make sure your priorities are straight.

 Paying your rent should always be your first priority. Paying down credit card debt should be next.

2.    Automate saving money.

Determine how much you can save based on your current expenses. Once you determine the amount, automatically put it into your savings account. Record the savings each month as an expense. Look at it as a bill that needs to be paid.

3.   Look for money-making opportunities.

Take a look around your home for unneeded items to sell online or in a yard sale. Or, turn your hobby into a part-time, money-making enterprise. You would be surprised at how quickly small proceeds accumulate.

4.   Keep track of your daily expenses.

By tracking your daily expenses, you will be able to see what you can cut back or cut out. For example, if you have free coffee at work, do you need to stop at the coffee shop every morning? Also, try paying with cash instead of using your debit or credit card. Studies have shown that people tend to spend 15 to 20% less when they pay with cash.

5.   Reduce your household expenses.

There are many ways to cut back on your household expenses that will help you save for a down payment more quickly. Just switching to cold water when washing clothes will save up to 90% of the energy expended in the washing cycle. Turning your hot water temperature down to 120 degrees will also help you save money.

Implementing any of these tips can make a real difference in how quickly you can save for your new home. For more tips and help with purchasing your new home, contact us Ameri-Star Homes at 410-590-1000.