Small Ways to Help Save for Your Down Payment

14 Jan Small Ways to Help Save for Your Down Payment

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Purchasing a home is an exciting time in any person’s life. There are some things you should consider to ensure that you are making the best financial decisions possible. One of the first things you should figure out is how much money you should save for a down payment. Getting a down payment for the house you want to buy is one of the troubles that most homebuyers encounter when you talk about real estate financing. First time and seasoned home buyers need to have a large sum of cash for upfront costs. It may seem daunting to save for a down payment. This is especially true in difficult economic times when the job outlook is uncertain at best. You do not need to be making a small fortune at work to save up for a down payment, regardless of popular belief. In fact, just by being more conscious of how you spend your money, there are several easy ways to achieve your goals. Try these three simple tips on for size.

Start to cook at home and stop eating out, first and foremost. You’re spending around $10 a meal if you eat out even just one time a week at a mid-priced restaurant. Now, add in the costs of all appetizers, desserts and drinks you normally order, as well. Perhaps it’s $20 now. Remember to budget for the gratuity as well. Things add up fast and before you know it; one meal costs $25 or $30. You could easily spend over $100, once you multiply that figure by the number of times you eat out every couple weeks.

You could always try cooking your favorite meals on your own instead. Ask for ice water with your meal since it’s free, if you do go to restaurants. Consider reducing the tip you give from 15% to 10%. It will sure add up toward your down payment, even though on smaller checks, the difference is not that much.

A second suggestion would be to use fewer paper towels. The cost of purchase adds up over time, even though it’s everyone’s favorite way to clean up a mess or wipe your hands. Why wouldn’t you use this tip if it’s free and just as efficient to use rags? All you should do is wash them and reuse them as well. You only need a little common sense to make a huge impact in your down payment savings plan.

A third suggestion would be to stop subscriptions to magazines. You can usually find the same information online for free anyway. You can do the same with movies. At around $30 for a single admission, popcorn and beverage, there’s no point in going out. A monthly movie rental subscription program by mail is something you should think about instead.

Saving for a home of your own can seem impossible at times, but little by little those savings will add up to helping you purchase the house of your dreams. Saving money toward a down payment can be achieved in just three simple ways.

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