Saving enough cash to purchase a home may seem impossible, but with hard work and a goal-getting attitude, the journey can be easy. You may have other expenses such as paying rent, schooling among others, that require money; therefore, make an extra effort to boost your savings.
Know your Budget and Savings Goal
First of all, you need to know how much to save for the house down payment. Consult a mortgage lender and ask for advice on the mortgage you can qualify for, the home price, and the needed amount for a down payment. Go to the ground and see an example of the house your mortgage can finance and see if it fits your dream home. In the last quarter of 2017, the average sale of condos in Manhattan was $1.9 million in existing buildings. With that in mind, you’ll know how much to save, and within no time, you will achieve your goal with proper budgeting.
From there, take a look at your credit card payments and check how much you spend on essentials such as food, rent, student loan, etc., and non-essentials like entertainment, tours, luxury goods, and restaurants. Then, determine which areas to cut back and with which percentage. After that, make a clear budget and set the amount you’ll be depositing for the down payment every month without fail.
Downsizing is one of the quickest ways to save more money for a down payment. You can decide to reduce your expenses and live a simple life while you save. For instance, you can move to a cheaper apartment, sell one car and buy your stuff in cheaper stores.
Also, you can quit or reduce some habits such as drinking alcohol, impulse buying, and ordering fast foods and instead cook your meals at home.
Start a Side Hustle
The business economy has grown tremendously in the recent past, with approximately 400 million entrepreneurs worldwide. There are various opportunities for grabs that can help you save more money for a down payment. With advancements in technology, you can do freelance jobs such as writing, opening an online shop, or forex trading. Set some hours in a week for side hustles like pets sitting, delivering meals, car washing, among others. The idea is to boost your savings for your dream home.
Rent out Your Parking Space or Extra Room
If you have a big home with extra rooms, rent it out for some time and get extra cash. You can list it on websites such as Airbnb and decide who to rent it to and at what time. Plan your renting schedule well; if you’re expecting a guest, ensure the room is unoccupied.
If you have an assigned parking space, you can consider renting it out over the weekends. People living in densely populated areas can use such opportunities and pocket extra cash.
Be Smart About Your Energy Usage
Energy used in homes, businesses, or organizations costs a lot of money, and thus it’s up to the user to determine how to save on such expenses. According to the U.S Department of Energy report, schools in the U.S spend more than $6 billion on energy, an amount of which they could have saved if they were smart on energy usage.
There are various ways which you can use for energy conservation:
- Use energy-efficient bulbs
- Turn off lights and appliances when away or at night
- Buy energy-efficient appliances
- Install a smart thermostat to reduce heating and cooling
Buying a home can be draining both mentally and pocket-wise, but the effort is worth it since, in the end, you will be a homeowner. Look for ways to boost your savings, such as looking for a well-paying job, asking for help from family and friends, reducing your debts, etc. With proper guidance and discipline, you’ll be a step away from homeownership.