Saving for the down payment on a home is probably the most overwhelming thing first time homebuyers have to worry about. Sometimes, it can even seem impossible. Here are a few ideas to help build that new home account and get you closer to your goal.
1. Get a Better Savings Account.
Most savings account these days are very low yield. However, you can find some account with a better interest rate at credit unions or perhaps a CD.
2. Get a Side Hustle.
Whether it is writing a blog, starting an Etsy business, or joining a network marketing company, there are plenty of ways to make extra money outside of your day job. Save every penny you earn from your side hustle in a separate account specifically for your new home.
3. Sell Stuff You Don’t Use.
If you aren’t using it, why not make some extra money from it. Hold a garage sale, sell on Facebook Marketplace, or use one of the countless apps.
4. Stop Impulse Buying.
Don’t let those checkout line items or the ads on Social Media sway you into those impulse buys.
5. Eat Out Once a Week or Less.
A $10 – $20 meal may not seem that bad, but it can add up especially with delivery fees and tips. Buy in bulk, eat at home, and save up those fees.
6. Pay Off High Interest Debt First.
Those high interest credit cards are costing you more monthly than your other loans, and simply paying the minimum will not get you very far. Focus on paying off cards with higher interest rates first, then put that payment towards your other cards. You will be surprised the amount of money you can save when you aren’t paying 25% interest on credit cards.
7. Get a Roommate to Split Rent.
It may not seem ideal, but if you have the ability to share rent for a while, the sacrifice may pay off immensely.
8. Unsubscribe to Anything Costing You Unnecessary Money.
Many of us probably have subscriptions out there that we will never use. However, since they are on autopay, we probably haven’t thought twice about them. Conduct an audit of your subscriptions and cancel any that you are not currently using or are not necessary.
9. Look at First Time Homebuyer Grants.
There are countless programs out there offering assistance to first time homebuyers. Do some research into what programs are available to you or reach out to a home lender who is fluent in these types of grant and loan programs.