Save for a Down Payment by Eating In
Americans tend to spend a lot of money on food that someone else prepared for us. Everyone is different – some people prefer to eat fast food every day of the week, so that’s where their money goes. Other people tend to visit more expensive restaurants, where each meal costs more but maybe they go less often.
Either way – most of us are eating out more than we need to be. Even with COVID-19 around, a lot of us are still getting takeout several times a week. Even though it’s convenient, it is costing you a lot of money.
Try slowly scaling back. If you normally go out 4 times a week, drop it down to 3. Cook your own meal, and intentionally transfer that money you saved into a savings account for your down payment.
Don’t wait until the end of the month! Do it now before you forget about the money you just saved by not going out to eat.
How quickly does this add up? Let’s say you’re able to save $200 per month. Over the course of 2 years, that comes out to $4,800. Not a bad chunk of change.
Save for a Down Payment by Lowering Utilities
Do you really need the fastest internet service available in your area? Or how about that cable TV? Is it really worth paying $150 a month for that?
Consider scaling back on your utilities to save some serious cash. For example, maybe you can ditch the expensive cable bill and just use Netflix, Amazon Prime Video and Disney+. Even if you have all 3, you’ll be saving a lot of money every month.
And maybe you decide you can get by on a slightly slower internet connection.
If you make those changes and save $125 a month, that comes out to $3,000 over two years. That’s worth it to help you get into your dream home, right?
Make Extra Money to Save Money for a Down Payment
In uncertain times like these with coronavirus around, a lot of people are relying on side hustles to pay the bills. Even if you don’t need it to pay the bills, consider taking up a side hustle to help save money faster.
Let’s say you’re able to make $15 an hour and work 10 hours a week. That gives you $150 a week, or $600 a month. Could an extra $14,400 saved over 2 years help you reach your down payment goal faster? Definitely.
Save Money on Your Vacations for 2 Years
Are you used to having a great beach vacation each year where you eat out every night and stay in a nice place? Consider finding alternative options that let you save that money for other things.
For example, maybe you can take a camping trip where, assuming you have the gear already, you can have an adventure for a relatively low cost.
Or maybe you live close enough to a lake that you can drive there and spend time there without having to spend money on food or lodging.
You can even still go to the beach, just commit to staying in a less expensive place and cooking a lot of your meals instead of eating out.
If you saved $1,500 for two years, that’s an extra $3,000 in the bank!
The key to saving money for a down payment is to be intentional and willing to give up small things today for a big reward tomorrow – your dream home! Give us a call at (877) 556-2655 and we’ll help you get ready for that next step in your life.