A Down Payment Isn’t That Difficult with These Smart Tips
Guidance Residential is always looking out for our customers first. Whether you’re in the market for a new home or refinancing your current home, we want to provide you with resources and support through out your process, to ensure you have the very best service.
Saving for your down payment can be challenging, especially if you’re already on a tight budget like most of us are. With a little discipline and some minor adjustments to your everyday household, these 6 tips can get you started in the right direction for homeownership and more savings!
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1. Coffee and Meal Prep
As odd as it sounds, we spend hundreds and thousands of dollars on fast-food and restaurants without realizing it. Dinner out with a family can sometimes exceed the weekly grocery budget and over weeks, that can really add up. By meal prepping and brewing coffee at home, you can save hundreds of dollars each month. Plan out your weekly menu and allocate time to discuss menu options with your household. It’s also a great start to a healthier lifestyle and savings.
2. Organize and Track All Your Expenses
Each month, determine exactly where your money goes by keeping track of every single item or service you purchase over 30 days. Review your credit card and bank statements to categorize where you spend each dollar to determine what you can eliminate and save towards your down payment.
3. Set personal goals for saving
After step 2, use a budget to set monthly and yearly savings goals. By determining your necessary expenses and cutting back from extras, you should be able to plan for an allocation of savings each month. This doesn’t mean completely avoid entertainment and excursions but rather cap and plan for them so you save and have fun.
4. Open a “Rainy Day” Savings Account
With all these new savings, it’s best to open a separate account and as you pay out your bills, pay yourself first with the funds you save. Over time, this money will accumulate and provide a nice nest towards your down payment. Remember, pay yourself first!
5. Make Smart Choices
By making smart lifestyles choices and changes like quit smoking, drinking tap water when available, and carpooling not only help the environment and your health, but also helps your pocket book significantly. The money you save from these changes can add up and before you know it, add even more towards your down payment.
6. Save and Maximize Your Tax Refund
More than 150 million tax returns will be filed next year, estimated by the IRS. That’s a great nest egg to put towards your down payment and savings.
These are just some easy tips and best practices from our Guidance family to yours.