Smart Ways to Save for a Down Payment- Are you setting up to make a real estate purchase in the next few years? If so, you’re probably trying to save up your funds to make a down payment. For most mortgages, a 20% down payment of the purchase point of the home is required, and that much money can take time to save. You might already have started planning on how you’re going to save enough to make a down payment, but wouldn’t you like to save smarter? We’ve rounded up our best tips for saving your hard-earned funds to make a down payment on the home of your dreams. Keep them in mind and your savings will add up in no time!
Here are our tips for saving up for your down payment:
- Lower the cost of your expenses. You can save a lot of money by making sure you’re getting the best deal for what you’re already paying for. Don’t use cable TV often? Get rid of it and stick with your Netflix or Hulu account. Can you get a better price on your insurance or phone plan? Do your research and get the most bang for your buck.
- Create a budget and stick to it. You’re probably already trying to save, but putting a plan in writing will show you exactly how much you are spending and where you can cut back. It will also help keep you on track. There are a number of convenient online tools and apps that can make this easier. Try Mint.com for a tool that you can access on your phone and your computer.
- Increase your income. Sounds obvious, right? You might be picking up more hours at your job, but there are several ways to make a little more cash to put towards your down payment. Try freelancing or getting a part-time job to make some money on the weekends. You can also have a garage sale or sell any old or unnecessary items on eBay.
Saving up for a down payment can seem intimidating, but it’s all about preparation and good planning. Start early and keep these tips in mind and your hard work will pay off. Happy saving!