One of life’s ultimate hurdles is trying to save money for a down payment on a house. Depending on the area you are trying to buy in and the housing market, the typical 20 percent of the price can be a large sum of money that can take many people and families years to save for. In a tight economy and with possibly several other payments due each month, it is definitely a challenge saving money. The Janes Group real estate agency wants only the best for our clients and we want to help in any way possible. Unfortunately, we can’t help you save money, but we can offer these helpful tips on how to save money for a down payment. Reach out to our real estate team today for more helpful information on buying a house.
Think about how much money you owe each month for items other than necessities such as rent or car payments. Are you paying for cable? Do you have a large data plan for your cell phone? Do you have a gym membership? Do you buy books and DVDs? Do you have magazine subscriptions? Do you eat out a lot? Consider canceling cable and subscribing to Netflix, workout at home, visit your local library, try to scale back on your cell phone bill, or cut back on how many times you go out each week or month. Making even small changes can make a big difference over time.
Budget and Timeline
Creating a budget for monthly expenses and a plan for how much you want to save by a certain point in time can give you some perspective on what it will take to save what you need to. Setting an overall goal will also give you something to reach for. If you want to save $20,000 in 2 years, break it down into months and even days. So when you want to go out for dinner instead of cooking up that chicken that’s been in the fridge, you can tell yourself that you need to save that money to make your goal. However, don’t be too strict, give yourself some leeway and a little cushion so that you can take a night off and enjoy your hard work.
Reduce Large Expenses
This can be challenging when you are comfortable with what you have, but consider downsizing your car to have a smaller payment each month. If you’re planning a vacation, consider going to a place where you can stay with friends or family. If you live by yourself in a spacious two bedroom apartment, think about moving to a smaller space with a smaller rent, or share the rent with a roommate. It is a sacrifice giving up some personal space, but if you remind yourself of the reward, in the end, it will give you some hope.
Save Extra Money
Holiday bonus at work? Big commission check? Large tax return? Put it in the bank! It can be tempting to spend it on a big dinner, that big screen TV you’ve had your eye on, or an expensive pair of shoes, but in the long run, if you save the money, you will be that much closer to your goal.
Real estate is a challenging market and it takes determination to save money for a down payment. If you’re trying to find a house for sale that you will live in for years, it will all be worth the effort. In the Loveland and Northern Colorado area, buying a house can be challenging and having a competitive down payment can make a big difference when you’re up against other offers. When you want help in your search for a property for sale, contact the real estate agents at The Janes Group. Our real estate team will be there for you every step of the way.