4 Ways to Save for Your Next Home

Anyone who is planning to buy a home is going to have to plan by putting money aside for a down payment. If you own your current home, then you may have enough equity in it to roll into the next house. However, if you are a first time buyer then you will need to do some budgeting to save.

Rents nowadays are higher and many still have student loans and other debts that can make saving for a home more difficult. However, don’t fear as there are many ways that can help you save. Here are a few helpful tips:

Limit Your Spending – This could be the most obvious way to begin saving, but check for places that you can cut back. Try limiting the number of coffees you get each week, or maybe you can downgrade the cable TV subscription you have. Add up the various places you could be trimming expenses and put that into your savings account instead.

Round-off App – Some mobile apps like Acorns and Clarity Money will round off your transactions and invest your money or conveniently put it into a your savings account. Every transaction that you make is rounded off to the nearest dollar. Check with your bank as some offer this.

Automatic Deposits – Initiate automatic deposits into your savings account for right after you get paid so you know you the cash is available. If you cannot automate this with your bank, set a calendar reminder every two weeks to make deposits manually. Select an amount that you can afford that will not interfere with your bills but will accumulate into a good amount within your time frame.

Sell Unwanted Items – Do some “spring cleaning” and audit your belongings in and outside of your closets. What things could you potentially sell? Other than Craigslist, there are apps like Letgo or Offerup that make selling your things very easy. The additional $20 here and $50 there can really add up.

In the end, don’t get discouraged thinking you have to have 20% to put down. There are many different programs offered by lenders now where you can sometimes put down as little as 3%. If you have any questions, contact me today and I would be happy to assist you.