Simple Ways to Save for a Down Payment

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For a lot of first time home buyers, coming up with the down payment and closing costs can be the most stressful part of buying a home. Whether you’re going with the FHA route with a minimum of 3.5% down, or the convention loan route with a 20% down payment, saving for a down payment can take time. Here are simple ways to save for a down payment.

Simple Ways to Save for a Down Payment

Check your progress

One of the best ways to save for a down payment is to check your current progress. This means you’ll need to get ahold of your finances analyze how you’re currently spending your income. For a lot of people, dining out can cost hundreds of dollars a week, whereas meal prepping at the grocery store could be a couple hundred dollars a month. Once you’re aware of how much you’re spending in each area, make a budget and check your progress every week. This will keep you on track on to meet your goals.

Coffee

Starbucks is so delicious, but it can add up over time. A $5 coffee every day of the month can cost you $155 a month just in coffee. And this doesn’t even consider the days you want to add a bagel in there too. Consider investing in a coffee maker and you can cut your coffee costs significantly. Additionally, a lot of workplaces offer coffee at a subsidized rate, or even free. Utilizing your resources can also save you a ton of money every month. Saving for a down payment doesn’t mean you need to get rid of things all together, it just means you need to modify how you do things.

Subscriptions

Subscriptions can add up every month, and we may not even know what we’re signed up for anymore. Go through you monthly bank statement and take note of all your subscriptions. Then go through and cancel all the ones you don’t use on a regular basis. It’s common for people to pay for 2 subscriptions of similar products such as music streaming. Chances are you aren’t regularly using both, so cancel the one you use less frequently. These services can give you $20-$30 back a month

Sell unwanted items

If you go to your garage, you’ll likely have a ton of items you want to sell. Try selling items one by one over Craigslist or Facebook Marketplace. You’ll be surprised how much you can get from a lot of little items adding up! Additionally, if you truly have a whole garage full of things you want to sell, consider putting together a garage sale to sell everything at once. This will help you make money, but will also help you clean out your garage!

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