Down payments are often one of the biggest hurdles stopping people from buying a home. It might help to know that you don’t always need a 20% down payment since many lenders have options that could allow you to put as little as zero to three percent down. With that in mind, you might still want to save up to at least have something to put on the table. If so, then these seven ideas can help you build your down payment fund faster than you might expect.
Categorize Your Expenses
Taking a new look at your budget is a good place to start. You can use software to organize your current expenses into categories that make it easier to see where you are spending your money. Seeing that you are spending hundreds of dollars eating out every week could help you make strategic decisions about where to cut back.
Cancel Unnecessary Subscriptions
Subscription boxes, online news sources, and other recurring charges are easy to forget about over time. While it is fun to get a new crate full of makeup or clothes, the truth is that you may forget to send back the things that you don’t need. Instead of stressing over returns, consider stopping the subscriptions you don’t use. You can always start them up again later when you get that big closet you’re dreaming of owning.
Know How to Request a Raise
Asking for a raise is nerve-wracking, but this could dramatically increase your income. If it is time for your annual performance review or you’ve recently tackled some major projects, then the time is right. Practice highlighting your recent accomplishments, and drum up the confidence to ask for what you deserve.
Switch to At-Home Spa Treatments
DIY haircuts might be a bit much, but you could cut down on other self-care expenses to save for your house. Try swapping massages with your partner instead of visiting your neighborhood spa. You could also do your own manicure or facial to save some extra cash.
Do a Few Side Jobs
Remember when you used to bring in the money by babysitting? Well, you can still earn extra money offering to care for other people’s kids. Or, you could start a cake decorating business on the weekends or pet sit for people in the neighborhood. Make a commitment to put any money you earn from a side gig into your down payment fund, and you’ll see it start to grow fast.
Make Your Mission Known
Your friends and family are likely to be supportive of your plans. With close loved ones, it might help to clue them in that you’d appreciate cash gifts for special occasions that you can put towards your fund. You might even come across a relative who is willing to donate some money to your cause.
Set Up an Automatic Savings Plan
If you don’t see it, then you won’t have to worry about it. Automatic savings plans are based upon this concept. You can set up a savings plan that automatically transfers a certain amount of money to a savings account on payday. With the money automatically going to savings, you’ll be less likely to spend it.
The biggest key to saving for a down payment is to have an idea of how much you need in your account. Identifying the general asking price of the homes for sale in Estes Park that fit your needs helps you crunch the numbers and figure out how much to save. Then, all you have to do is use your new strategies to get ready to buy the house of your dreams and begin building even greater financial security.
