How to Save For a Home in 12 Months

save for a home in 12 months
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One of the largest hurdles for prospective homebuyers is coming up with the down payment and closing costs. The idea that you have to front thousands of dollars can seem daunting and discouraging to some. But as long as you and your family are focused and disciplined, you can save for a home in 12 months.

How to Save For a Home in 12 Months

Track your spending

The best way to improve any habit is to track your habit and hold yourself accountable to daily, monthly, and yearly goals. There are many online apps that track your spending and keep a running total of the amounts that you spend on specific items. This allows you to understand where you are spending most of your money. If you are spending 60% of your income on food, it probably means you are dining out frequently which can really add up. Coffee alone can add up to hundreds of dollars per month. If possible, consider making coffee at home as it saves a ton of money in the long run.

Make a budget

Once you’ve understood where you’re spending your money, make a budget and stick with it. If you find that you’re subscribed to similar services, pick one and cancel your subscription to the other. For example, if you are paying over $20/month for two music streaming services, you likely won’t even notice if one is gone. Additionally, making sure you turn off the lights when you leave your home, and turning the heat down during the night can help you save on energy bills. Finally, a good way to save for a home in 12 months is to cut out going out. If you want to hang out with your friends, invite them over to your home. Just because you’re not going out, doesn’t mean you have to stop seeing your friends!

Be a deal hunter

While it’s not the most glamorous life, thrifting and coupon clipping can actually save you hundreds of dollars per month. If you shop at an expensive grocery store and find the same items for cheaper at a different grocery store, try shopping at the new store for a while. You’d be surprised how much money you can save by cutting down grocery spending. Additionally, if you are looking for simple items such as sandwich bags or glass jars, stores like the dollar store have similar items for much less.

Look for a side hustle

Side hustles are common, especially if you’re saving up for a big purchase. See if there are ways to work extra hours at your job. Additionally, driving for a ride share service during your days off, can give you an extra few hundred dollars at the end of the month. Think about your skills and talents that you could parlay into freelance income.

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