Saving for a house can seem daunting, but there are plenty of ways to make it happen sooner rather than later. Whether you opt for a longer-term plan or go for some quick and easy fixes, getting your finances in order is the key to success.
It is extremally vital to buy a home in today’s environment if you plan on living in an area for more than three years. With the way rent prices have been increasing, buying a home will help you keep a more level payment for yourself. Owning a home is one of the biggest catalysts to wealth building. Owning a home free and clear is a top priority for most F.I.R.E. (financial independence retire early) orientated goal seekers.
There are many ways to save money for a house. One of the fastest ways to save money is by making a budget and sticking to it. When you make a budget, you figure out how much money you have coming in and how much money you have going out. Writing down your budget will help you see where you can cut back on your spending. You can also start saving money by putting away some of your income each month.
Here is a great budget tool. It’s free and it uses Google Sheets: Budgeting Tool. If it doesn’t pull up make sure to be signed in to Google. It is extremely simple and lets you adjust numbers, unlike other systems. Plus I can’t stand all the emails and ads you get from others like Mint.
Saving money for a home
There are many ways to save money for a house. The fastest way to save money is to have a plan and be committed to it. You need to know how much you need for a down payment and closing costs, and then create a budget that will allow you to reach your goal. You should also make sure you receive all the tax breaks and savings available to you.
You can also apply for government grants or tax credits to help you afford a home. Certain areas are more likely to have grants and forgivable loans. A good realtor will know if these are available in your home search area.
The 4 fastest ways to save money for your new home:
There are many ways to save money for a house. A quick way to save money is to cut back on expenses. If you cut going out to eat for a month and make peanut butter sandwiches for lunch. I bet you can save a good chunk of change towards a home down payment.
One of the best ways is to start a viral campaign on social media. You could ask your friends and family to share your campaign with their friends and family. Collecting gifts can help you raise money quickly. Even if people can chip in only a couple of dollars, if a few hundred people chips in, it will really kickstart your housing fund. Or just ask close relatives if they could help.
Another way to save money is to sell unnecessary belongings. I know you have to have items just sitting around gathering dust. Old cell phones, modems, games are examples.
Playing on the above approach, instead of asking for money from relatives and friends, you ask for their unused items. Ask them if they have anything lying around the house that you could sell to raise money for your new home purchase. I know I have a lot of things. If it was a worthy cause I would be happy to help them out with some of my dust collecting items.
Hold a garage sale! If you don’t have a garage, ask a close relative to use theirs. Ask for items to sell for free or you could sell them for a cut of the profit.
Get a higher-paying job, now this one isn’t as easy and might not be as quick to earn money like the rest. With a higher paying job not only can you save for the down payment but you can also possibly qualify for a bigger mortgage which opens up more homes to you.
Make extra money on the side by taking on extra work. They are sometimes referred to as a side hustle or moonlighting. For example, you could do Uber or delivery services. Just make sure to update your car insurance before starting this side hustle.
Tips to save money fast
Every day, take a look at what you’re buying. Then, ask yourself if it is worth it over saving enough money for your house down payment?
Can you do without it?
Is there a less expensive alternative?
Conclusion to Saving Quickly for Down payment on a New Home
Here is the short version of what we discussed to help you save money for a down payment on a house.
Cut your expenses
Negotiate a better deal
Use a budget
Make extra money
Invest your money wisely
Live below your means
The more of these you apply, the quicker you will save the home down payment.
If you have any other ideas for ways to save money for a house, please list them in the comments below. Helping others achieve their homeownership goals is a great way to contribute.