Buying a home can be challenging in all kinds of ways. Simply finding a home that has everything you need is a big accomplishment, and we're here to help you in every way that we can.
For many, saving the money needed for buying a house is another major challenge. So to help you avoid any financing woes, our team has put together some of our favorite clever tips to save money for buying a home. With a little willpower and outside-the-box thinking, you'll be well on your way to saving for your dream home.
- Make More Money
Sounds pretty simple, doesn't it? Of course, you can't just make money appear in your bank account, but there are plenty of ways to get a little extra dough rolling in, whether it's picking up an extra shift every week, or even taking a second job on the side. Now is also a good time to have the yard sale of a lifetime; if you don't need it, sell it. You'll make a little extra dough, and you'll have fewer things to carry around when moving day comes.
- Create a Separate Account
When you're putting aside money that you plan to use for buying a house, create a separate bank account that is to be used solely for that purpose. When you keep your new-home funds in your regular savings or checking account, it's too easy to become complacent and start spending your savings without realizing that you're setting yourself back. Put that money aside, and don't touch it until you've found your dream home.
- Downsize Now, Upsize Later
It might seem like moving backward, but sometimes the best way to step forward is to take a step back first. If you're renting a big apartment, you can temporarily move into a smaller place and start putting aside the money you save on rent. If you're leasing a pricey car, trade it in for something cheap and reliable that gets good gas mileage. Skip your vacation, eat out less, drop your gym membership and work out at home, start buying generic-brand breakfast cereal – whatever you have to do.
- Save Automatically
Unless saving money comes much more naturally to you than it does to just about everyone else, it's tremendously beneficial to automate your savings process. Set up an automated savings plan so that a certain percentage of your earnings are automatically set aside for your new home.
- Make It a Contest
If you and a significant other are buying a house together, you have a chance to finally put your competitive impulses to good use. Turn saving money into a contest, and keep track of how much you are each able to put aside. It's a surprisingly effective incentive. And if you need a "prize" that's more tempting than simple bragging rights, how about this: whoever saves the most money gets to choose what color to paint your new living room.