In part one of this blog post we covered the first steps to help you save for a down payment, which involved:
Now let’s talk about some of the money habits that can help you get there faster.
Saving money is hard enough, but it’s even harder without a budget. Create a realistic budget based on your essential expenses—food, housing, cars, student loan debt, etc.—and non-essential expenses like entertainment, eating out, and shopping. One of the biggest mistakes people make here is not being realistic about your actual spending. For example, you can put $200 for your food budget, but if you actually spend $600 a month then you are not likely to hit your $200 goal.
Once you have your budget, put savings into a separate account immediately after you get paid. Treating savings as an essential “expense” and setting it aside can help you avoid spending it on other things. Having your savings automatically transferred from your checking account is another great way to make sure you do it every month.
If money is already tight and it would be very hard to save money based on your current income, look for ways to earn more. Some examples of how to earn more include:
Sometimes the best way to save money is to figure out where you are spending a lot on something that is bad for you or your health. For example:
For many people saving for a down payment seems out of reach, but with the right steps, you can save enough to get there. Talk to our lenders at Integrity First Lending for more tips and help making your American Dream of owning a home more of a reality.