Saving money for a down payment on a home can be a daunting and impossible task to many. Luckily there are many creative ways that you can tighten your money strings and save for that down payment.
First it is important to know how much you really need to save. Is it 5% or 25%. The type of loan you are applying for will have a minimum amount. Speak with a loan professional to find out what you qualify for and how much to save up.
Second, remember that it takes time to save. Instant results are few and far between and it may take you quite a while to save what you need for the home that you want. In the end it is worth it!
Now for the list. Here are 10 unique ways to save up for that down payment! (Just remember, what you save needs to be put aside where you won’t accidentally spend it.)
- Cut your cable- With cable/satellite costing around $100 for a basic package, that money can be saved. Using the internet that most people already have, you can watch TV online for a fraction of the cost (if not free)
- Don’t eat out- Start watching your grocery budget closer. Are there foods/drinks that you could go without to save money. A 12 pack of soda is around $5, once in a while not a big deal, but overtime that is money that can be used for a down payment
- Shop banks- Most people use what they are used to. If you have had the same bank account since you were 16 shop around. A lot of banks will offer new account bonuses, as well as different interest rates on savings accounts. Remember, every penny counts!
- Sell your stuff- Have you looked around and taken note of what is just gathering dust? Do you really need 10 pairs of black boots? Selling items 2nd hand can bring in money that you didn’t realize you had.
- Price shop- Have you checked the apps before you go to the store. Most of the big stores will price match. A little time shopping around for the best deal can mean savings building up over time for your future home.
- Hair Care/Cuts- Cutting your own hair can save hundreds over time. But did you know you can also go to a beauty school and have your hair cut for a fraction of the cost, sometimes even free. The students are all supervised by a licensed stylist so getting a great cut isn’t hard. It is also a great way to save on color.
- Cell Plans- Having a cell phone may not be considered a luxury any more. But there are still ways to save. Consider combining cell plans with extended family for a discounted rate!
- Cook from scratch- It may take practice, and a lot of patience, but you can easily save big. Making a cake using flour, eggs, and sugar is actually cheaper than buying the mix. Making soup from scratch, is an amazing way to feed everyone for just pennies a serving.
- Cleaning- Did you realize you don’t need to buy those pricey cleaners. Using vinegar and some simple household products, you can get your home clean at a fraction of the cost.
- Buy in bulk- For a large family this is a huge savings, but if it is just you it is also feasible. Join up with friends and family to buy food in bulk and split it up between you sharing the cost.