5 ways to save money to buy your first home
As a prospective homebuyer, the thought of saving for a down payment can seem daunting but the best thing to do is to break it down into smaller, more achievable goals. There are tons of ways to save money and spend wisely – here’s a quick list of helpful tips:
1. Skip The Restaurants
Whether you are eating fast food or trying out that new restaurant that just opened up around the block, save it for the celebratory moments. Even though eating out is easy, fun and exciting, staying in a few nights a month could save you hundreds of dollars for your down payment.
2. Skip The Coffee Run
If you are addicted to caffeine like most of us, not drinking coffee is just not an option. You can always brew a pot at home or use other natural alternatives like exercising, eating superfoods or even some sun exposure! Saving just $4/day on that latte, will save you almost $1,500 by the end of the year to help with your down payment!
3. Skip/unsubscribe from your favorite stores’ newsletter
We all love hearing about special deals and promotions from our favorite brands but unsubscribing from these newsletters can reduce the urge to splurge on these “deals”. Skipping unnecessary offers could save thousands to help with your down payment.
4. Cancel unnecessary memberships/subscriptions
If you think saving a few bucks a month can’t help, just take a look at the all monthly memberships and subscriptions you’ve signed up for. Whether it is the gym, Netflix, that meal-kit delivery or the personalized monthly box of grooming samples it’s best to re-evaluate how often you are actually using these services. Cancelling one or two of these will save you thousands by the end of the year to help with your down payment.
5. Budget and stick to it
If you are trying to create a budget for yourself, it’s best to start small. Start with something attainable and grow from there. When saving for a down payment, starting with small tweaks to your lifestyle can really add up! And remember, you don’t need a 20% down payment – there are a lot of programs available with is as little as 3% down.