Saving for a down payment is difficult for most and achieving what you desire requires sacrifices. That’s generally easier said than done. If you analyze your spending and lifestyle habits you can determine quickly how to conserve enough reserve to buy a home.
Here are six tips that can help you put away $50 to hundreds of dollars each month. Start with a fresh sheet of paper or a digital document that you can refer to frequently. Keeping it fresh on your mind will help you achieve your goals.
1. Write down what your bring home pay is and what your monthly expenses are. Be clear about how much actually comes in and exactly how much is going out. Seeing where you spend your money and what it is being spent on will help you determine where you can cut costs.
2. If you have recurring monthly charges for services, consider getting rid of them. For example if you have a gym membership and only using it a few times a month this could be eliminated. Most people have some recurring monthly service expense that could be eliminated and this could generate hundreds of dollars of savings over a year.
3. The daily coffee run could be costly. That fancy coffee run can cost more than $30.00 week. Save the coffee run for a treat on your day off and put that money away.
4. Cut back on eating out. Cooking more meals at home will allow you to take leftovers for lunch the next day. This could eliminate two dining out costs. When dining out look for coupons available and early bird specials to add savings to your dining.
5. Start a side job. Many people are making money working from home using the Internet. Explore your options and see how you can generate some extra cash each month.
6. Use momentum to pay back your debt. Paying back your debt with the highest interest rates first will show the fastest decline in debt. As you pay off one debt you can then add that money to get the next debt paid off quicker. By combining whatever you were paying on the paid off debt to another balance that you’re paying down, you’re giving it some momentum and you’ll get that next card paid down even faster.
Remember that reducing your spending is critical to having what you want. So don’t add to your debt, keep your eye on your goal. Becoming a homeowner is one of the most exciting things you will ever do.
Eileen Schamber is the president of the Lodi Association of Realtors and can be reached at firstname.lastname@example.org.