10 Essential Budget and Bank Tips to Save Money
This infographic is part of a 3-series of infographics on how to save money for a house. See our other two infographics on lifestyle habits you need to change and lifechanging habits you need to look into.
Saving for a home isn’t always the easiest task. Life makes it hard to set aside money and build up the necessary reserve to buy a home. Your efforts for saving have to include your budget and your bank. Taking a look at your bank accounts, and how you use them can yield some savings you can put into your account.
The importance of budgeting is hard to emphasize enough. Without a good, honest, budget you have no real control of your money. A budget tells you what you are currently spending. Your budget will tell you where you can save, and where you are simply wasting money.
- Budgeting: A budget allows you to determine how much money you have, and where to allocate it. By keeping to a budget you can begin putting money away into a fund for your new home.
- Separate the accounts: Your working accounts should be separate from your savings. If your willpower isn’t all that great, put it into accounts that are difficult to withdraw funds from.
- Set up autodrafts: Placing an automatic draft into a savings account is one of the better ways to set aside money. By paying yourself first you ensure the funds make it to the account and aren’t spent on other things.
- Transfer savings from retirement to home fund: If you are saving beyond what your employer matches move that money from your retirement to your home fund. This money isn’t lost, as you are still putting it into savings for your future.
- Withdraw from retirement fund: Some funds will allow you to withdraw your savings up to $10,000 towards your home fund. This may be one way to better use the money in the short term. Always make sure to repay yourself just as if you were saving for your home.
- Find the best accounts: If you are paying account fees look for free accounts. Transfer the money you save to the new home fund.
- Negotiate your rates: Look at the rates on your credit cards and current loans. Try asking for lower rates, or transferring balances.
- Check for autopay discounts: Check with all of the companies that you pay monthly and see if there is a discount for enrolling in an autopay system. If there is, then enroll and put that money into savings
- Don’t forget the government: There are government programs available to first time home buyers. Look into Housing and Urban Development and the Federal Housing Administration. If you are a veteran, don’t forget your VA loan.
- Put aside the extra: Money that comes in over your budget is best put directly into your savings account. Since you don’t have this money in your budget already, it won’t be missed. Ask yourself if you’d rather have the new TV, or the new house.