Top Tips For Saving Up For a Down Payment

Saving for a down payment to buy a home can seem like an impossible task these days. Between your regular monthly expenses, lifestyle costs and any additional debt you may currently have it can feel like there is not enough money coming in to put aside. However, there are some great programs out there and some crafty ways to save. Here is a closer look at some ways you can prepare. 

Set a time goal

First thing to do is to make a timeline of when you want to realistically buy. Then you will want to calculate your budget and figure out how much you will need to save each month. Your timeline may shift depending on if you can save in the desired time.

Ditch some expenses

For a short time you may have to do things like skip the coffee out, that mid week restaurant visit and a subscription or two that you may have. It’s not forever, so just remember that! Also, monitor your grocery bills and consider some cheaper options like Trader Joe’s or Aldi! 

Designate a savings account

One of the easiest ways to keep track of your savings is to set it aside from your regular monies. There are some savings accounts where you can even set up regular transfers into them so you know you are staying on track.

Retirement contributions

You might even want to consider lowering or pausing your retirement contributions while you save. Check with your financial advisors on what may be best here. 

Temporary downsizing

Are you in a large apartment all by yourself? It may be wise to consider getting a roommate or moving in with a friend for a short time while you put aside the extra savings. 

Side job

If you have extra time during your week you may consider a temporary side job. Perhaps it is a shift or two at a restaurant or shop in the eves but you can allocate all of this extra income to your down payment.

Sell unwanted items

Take a look at all of your belongings. Were you planning on getting rid of that dining set or thinning out your closet? Consider selling some things on the various apps that make it so easy these days.

Pause on big ticket purchases

Now is not the time to buy that new car or upgrade your living room furniture. Aside from keeping this cash on hand for your down payment, big purchases can negatively affect your credit score which is crucial before buying a home.

Research down payment assistance

Your local lender may be a good resource for this. There are many nationwide programs too that can help maximize your down payment. Some are in the form of grants where you don’t have to repay them.