It can seem like a big dream of owning your own home and thinking about saving up for a good down payment can seem even more overwhelming. I’m here to tell you, it’s possible. It will take discipline, patience and sacrifice but YOU CAN DO IT! Here are some simple yet effective ways you can save up money for a down payment on a home.
Automatic Savings Payments
The paycheck comes in and it’s exciting to see. But expenses come up and the money disappears faster than it came in. That’s why it’s important to pay yourself first and make it automatic. Set a certain amount of money aside (in a different bank account if you can) for your down payment. Remember, out of sight, out of mind.
Cut Out Extra Expense
By cutting back on your expenses, you’ll have extra money to put into your savings account. Take a look at your budget (or put one together if you don’t have one). See if there’s any wiggle room in your budget to manage to save. You could cut your Christmas/birthday budget down, wait to take that vacation, hold off on buying new clothing and anything else that isn’t essential.
Rent a Smaller Space
Not only does cutting down your budget help but cutting down on your living space could save you too. If you’re fortunate enough to be able to live with family for a bit, that could really help your savings grow fast. If not, try looking for a smaller space to rent. Sell off some of your furniture or things you don’t need and move to a smaller and cheaper place for a time just long enough to save what you need for a good down payment.
Cut Out Subscriptions/Memberships
This is a big one when it comes to saving money and living on a tight budget. Cancel the cable bill for a time, get rid of the car wash and gym memberships. There are other ways to still get a good workout in at home or wash the car by hand. These memberships alone could save you up to $100+ a month!
Meal Plan and Eat at Home
If you’re anything like me it’s difficult to want to cook dinner after a long day but skipping the drive thru and making something at home can save you big money. Especially if you cut it out completely. Plan your meals, take one shopping trip to the grocery store (because those little trips to get a couple things for dinner add up), and eat at home. I promise this sacrifice now will pay off in the long run.
Find Ways to Make More Money
Pickup up an extra job for a little bit will help the dollars roll in faster. You can offer to babysit for family and friends, mow some lawns, put together “crock pot meals” or freezer meals for others to buy, offer to detail clean cars and so many other ideas.