Anyone who has ever looked their goal in the face has felt imminent failure and that it would be impossible to reach. Which, if you’re here with us today, your goal is to save for a down payment to buy a house. It probably feels impossible when you already have a rent or mortgage payment currently, utilities, health insurance, groceries, the list goes on and on… where are you supposed to squeeze out extra money to put towards a down payment? Keep reading for our five tips to help you save for a down payment – the smart way and we’re adding a plan for how to save $5,000 in ONE YEAR!
1. Start Saving in Advance
Get a savings account and save, save, save! Set aside a designated amount of time that you plan to be saving money and write down a budget. Speaking from experience we know that the best way to plan for the future is to write down what your expected future will be. Budget what you can and put the rest in savings. We recommend at least 6 months of savings. Scroll to the bottom of the page for how to save $5,000 in one year.
2. Pick Your City and Find Out About Property Tax
One area could be the difference between a couple hundred dollars in monthly payments, so it’s best to do your homework. Become a sponge and do your research as the next six months to a year goes on and learn everything you can to make the best financial decision for you. This may also help you realize you need to be saving more than you had originally anticipated.
3. Look At Your Spending And Edit It
It’s easy to drop $50 on a new pair of shoes when they go on sale or go out to eat after a stressful day at work, but you have to remain focused on your goal. When you remain committed to saving your money instead of spending it this will help you reach your goal sooner.
4. If You Don’t Have It, Don’t Spend It
Hide your credits cards. No, seriously. Hide them. You’re putting your name on a huge dollar amount of debt when you take on a mortgage, don’t add even more to it by racking up your credit cards during the saving process.
5. Build Your Support System
Positive reinforcement from family and friends will help you stay on course. They’ll remind you of why you started on this adventure in the first place. Purchasing your first home involves months of planning and sound-boarding. Don’t be afraid to ask for help. The world of real estate is a sea of endless options, so having a dedicated realtor who knows the process inside and out will help make the process as easy as possible for you.
When you’re ready to work with an agent, let us handle the rest. Give us a call to be connected to one of our agents at 479-271-9595.
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