Most people wish to purchase their own homes. Most of the time homes are great investments and it’s so exciting to purchase your very own first home. To get the best home you will have to have a down payment for your mortgage. Usually this is 10-20% of the mortgage, but you will want it to be as much as you can afford. You may think that it’s next to impossible to save that kind of money, which can amount to $10,000-$30,000 or more.
You will want to save as high of down payment as possible to get the best deal on your mortgage loan. This is especially true if you have less than perfect credit and are trying to get a better rate for your mortgage. So how can you save for your down payment?
How to Save more Every Month
Make a Budget
Making a budget will show you exactly where your money is going each month, and will show you how much is left from your monthly budget that you can save before making any changes. Budgets are easy to make yet hard for many to follow especially if you are married and you and your spouse save/spend differently. You will learn from looking over your budget you plan of action so that you can save the most money for your house down payment faster.
Pay Off Bills
First thing that you will want to do is to pay off all the bills that you can. If you can pay down or off your credit cards, once you get your bills paid down, you can put the rest in savings for your down payment on your house. While you will be able to save while paying your bills, if you pay off all the bills that you can you can save more every month towards your new home.
Making Extra Money
Work extra hours and bank that money. A few extra hours a month will help your savings grow faster if you bank that overtime money. Not only will you make more money, you will also make more per hour due to getting paid time and a half for that overtime.
You not only can make extra money working overtime, you can also earn extra money outside your regular fulltime job.
Start websites – earn from revenue from advertisers.
Work online – there are many places that you can work online and earn extra money
Sell things you no longer need or use
Work a part time job and use that money to save your house down payment
Cutting Down expenses
While saving for a down payment you will want to cut back on expenses. There are many places in your budget that you can cut back and bank that extra money.
Rent
Rent is probably a big expense in your budget. You may want to consider getting a less expensive place to rent and banking the excess towards your down payment goals, or moving in with family for a few months and save even more money towards your down payment.
Shopping
Shop online where you can comparison shop, stop purchasing big ticket items that you put on your credit cards, or pay for. Stop going out to dinners – eating at home will save you money every month. Start carrying your lunch to work; eating out every month can make you spend an extra $200 a month without realizing it.
There are many ways that you can cut back with shopping. You won’t want to purchase things for the home till you actually move into your new home so this is a great time to cut back on shopping expenses.
Simple way to save money
Save all your change. This will add up quickly.
Save certain dollar bills. Some people will save all the $10 bills that they get and then some will save certain bills – One person saves all dollar bills with a certain number on. It’s kind of fun to search for them and you automatically know to save them.
Link your bank and your savings account, every day when you go into your account, move over the change into your savings. Example: if you have 251.77 you could move over 1.77 or .77 to your savings. this is really a painless way to save money without feeling the pinch.
Try to put at least 10% of your paycheck into savings. You should try to put more in if you can afford it, even 1% above 10 helps you save more money for your down payment even faster.
Saving for your down payment won’t be painless, but there are many ways that youc an save and get your down payment in a shorter period of time.
