5 Easy Ways To Start Saving For A Home

Buying a home is an indisputably large purchase. If you’re thinking of buying a new home in the near future, it’s smart to start thinking about ways to save cash for a down payment, moving costs, and incidentals. 

Saving can feel intimidating. Sometimes practical advice feels the most doable. Knowing where and how to start is the thing that will take a dream to the point of execution. These useful tips are a great start! 

1. Budget- Creating a budget that will actually be used is a key way to take control of your finances. There are hundreds of ways to budget. From apps to personal finance books, there are as many ways to budget as there are banks! Figure out what works for you- then DO it! It can be as simple as a cash only spending system or as complex as you’d like. Start by coming to terms with what you make and what you spend, then factor in a plan to start saving. 

2. Research- The amount you will need in order to buy a home could be less than you think! There are exciting first time homebuyer incentives, down payment assistance programs, and more available for buyers. We can put you in touch with someone who is qualified to let you know what programs you could be eligible for. It’s also important to get a feel for the homes you’re hoping to purchase. How much of a down payment should you need for the type of home you’re looking for? Is it possible to achieve that goal? Research will put you on the right track.

3. Set Goals- Your plan to save money won’t actually work until you know what you’re saving for. Come up with a ballpark number that takes into account your purchasing plans, emergency expenses, and more. Knowing what you’re shooting for is an important way to make saving work. Make a goal and keep an eye on your progress. It’s satisfying and encouraging to see regular growth in your bank balance. Knowing what you’re working toward will put those growing numbers into perspective.

4. “Spend Less and Make More Money”- This anecdote has been thrown around for a long time. It sounds simple, but it can feel more difficult to achieve. Most of us have a set salary that may leave little room for saving. Think of a side hustle you can do. If your profession allows for overtime hours, take anything available. If you have the ability to freelance your skill set, take on an extra job each week for a few hours. It may even mean waiting tables a few nights a week to bolster your efforts to save. The next half to this equation is to spend less. It will speed up savings efforts tremendously. Since you’re already budgeting as discussed earlier (right?) you know exactly what’s coming in and out of your account each week. Spend some time seeing where you can cut costs. By cutting out unnecessary cable TV costs or a membership to a gym that you don’t use, you could potentially put aside an extra $1000 each year. Take a look at your monthly spending habits as well. Does eating out or restaurant delivery gobble up your budget? Is it possible to spend less on new clothing or experiences each month? Most families have ways they could potentially spend less, keep your eyes on the goal and see how yours can cut costs. 

5. Automate Savings- Your bank likely offers free tools for easy online banking. Set up a monthly automated payment to send a set amount to your savings account following each paycheck. By automating the process, it gives you less chance to spend that cash on something else. Some banks offer programs that round up dollar amounts to place the change into a savings account. This means if you spend $5.70 with your debit card, the purchase is rounded up to $6.00 and $.30 is transferred automatically to your savings account. This sort of saving can quickly add up and support your other money savings efforts. Use the tech available to make your savings efforts simpler!

   
   

These tips are a practical starting point to support your efforts to save for a new home. What are some of your best tips for saving money?

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