How Can I Save Money to Buy a Home While I’m Still Renting?
Are you thinking of buying a home? Is the down payment what’s causing you to reconsider? We understand! Saving for a down payment and the initial costs of buying a home are what tend to prevent many homeowners from taking the next steps of moving toward homeownership.
Here are some ways you can exponentially grow your down payment, one small saving at a time:
Pack your lunch and avoid the coffee run temptation.
One of the ways to begin setting aside money for a down payment is to cut back on the small expenses that will eventually add up. For example, if you tend to spend on average $10 eating out every day. By the end of the week, you’re $50 behind. Multiply that by four and that becomes $200. If you continue this route, by the end of the year, you could be about $2,400 short. The same can apply when it comes to coffee runs. Like most people, you likely need your coffee to get through the day. Consider making enough at home and taking a coffee thermo with you. There’s also no harm in drinking the community coffee at work!
Pick up a side hustle.
What are you good at? Most people have talents that can transform into a business. Whether it’s painting nails, cutting grass, tutoring, selling cars, or working a customer service job on the weekends. If you have a talent or a skill that could potentially earn you a couple of hundred dollars every month, why not put it to good use? Remember to think of it as something that is temporary and will have a great reward in the end.
Cancel unused subscriptions or take a break.
Subscriptions to streaming services are almost as essential as your morning coffee but are there ones you haven’t used in months? It may not seem like much but canceling unused subscription services like Netflix, Amazon Prime, Hulu, Pandora, or Spotify could help you save roughly $500 or more on an annual basis. If you have cable, you’re looking at an annual savings of roughly $2,000.
Save your tax refunds, bonuses, birthday money, or any additional income.
The urge to immediately spend the $100 your grandma slipped you on your way out can be especially tempting but consider saving it! Saving all the gifts, bonuses, or extra money you’re given can add up to thousands towards your home’s down payment. The same goes for that raise you receive at work. When you’re barely making ends meet it can be a huge relief to receive even $100 extra every month. However, setting aside a portion of your paycheck could help you get even closer to your down payment goal.
Not using that gym membership? Cancel it!
Don’t worry—you’re not the first person to sign up for a gym membership and not use it. Even if you are occasionally visiting the gym, there are many other ways to get in your daily exercise without a gym membership. From walking outdoors to hiking the Franklin Mountains, YouTube videos, or a trampoline in your backyard, there are endless ways of staying fit for free.
Set up an automated savings account.
Saving for a down payment involves some sacrifice, however, the less you have to think about it, the easier it will feel. If you automate to have a portion of your paycheck go to a savings account, you won’t have to go into your account every two weeks or month (depending on how frequently you’re paid) to set aside money. What’s even better about automated savings is that you’ll forget it’s there.
Explore the Possibilities of Homeownership With Zia Homes
Whether you’re just getting started or you’ve been exploring new homes for quite some time now, Zia Homes is here to make the entire process a breeze! We’re confident you’ll fall in love with our modern floor plans and the gorgeous materials we incorporate throughout. If you haven’t already done so, we invite you to explore our homes in person!