How to Save Money To Buy A New Home

Saving money for a home can be an immense stressor. But, honestly, it doesn’t have to be. The truth is, many buyers will look for ways to amass a huge savings for a down payment instead of acknowledging all the small behaviors in life that can add up to big savings.

1. Evaluation – Take some time to look at your spending habits. Making a budget and sticking to it will help you add more to your savings every paycheck, which can accumulate quickly.
2. Cutting Back – After evaluation, you can make a list of ways to cut back. Packing a lunch at home could save you thousands a year. Waiting for sales rather than impulse buying can save you thousands on clothes and shoes.
3. Using Cash – Mentally, it’s harder to pay for something with cash. Putting away the debit and credit cards creates an attachment to the cash, making you more willing to save instead of spend.
4. Selling the Car – If your family owns two cars, try to get by with just one. Public transportation and carpooling will put money in the bank. You’ll have the money from the sale of the car, as well as everything you save on maintenance and gas money.
5. Selling Other Stuff – Remember all those dishes from your wedding that you never use? Sell them. How about the kids’ unused bikes? Extra furniture? Unused electronics? Your book or movie collection? You’d be surprised how quickly it can all add up.
6. Moving – If you can stay with a relative for a few months, you can put your regular mortgage or rent payment right into the bank. A smaller home may offer the same result.
7. Paying Off Debt – Pay off your debts first, and when they’re gone, put the payments toward your savings.
8. Investing – If you understand the risks or are in touch with someone who can help, it may be wise to invest your money and watch it grow.
9. Marketing Your Hobby – Whether you’re a crafter or a handyman, put yourself or your products out there for hire or sale. Taking side jobs or freelance work part time can be a great way to supplement income and save fast.
10. Testing the Waters – For growing families, it may be smart to test the waters of a one-income household before purchasing a house. If both spouses are working, you can live off the main income, and use the second to dump into the down payment savings.
11. Sacrifice – When you really think about it, you may have to make some sacrifices of time, money, and conveniences so that you can get the home that you want to be in for the rest of your life.
12. Relaxation – Make sure to give it some time, and just relax. Staying calm and being patient will help you keep a level head when it comes to spending and saving your money.

At Levine Homes Real Estate, we strongly suggest you look over your finances and save for a down payment. With these simple money saving tips, you could be into a home more quickly than you imagined.