How to Save Money for a House
10 Essential Budget and Bank Tips to Save Money
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.
19 Life Changing Tips and Tricks for Saving Money
Buying a home almost always requires you to put money down. At a minimum this is 5% of the value of your home. To put it in different terms, for every $100,000 of a home’s value you should expect to need $5000 in a down payment.
To achieve this goal requires effort and dedication. Our tips will help you find ways to save and find money where you didn’t think there was any. These tips aren’t all you should be doing. Take a look at your life and see what changes you can make. Be creative and inventive and find different ways to save money nobody has thought of.
- Iron clothes yourself: Doing your own ironing and clothes cleaning instead of taking them to the cleaners can yield over $100 a year in savings.
- Buy clothes on discount: Everyone likes to look stylish, but this can cost a lot. Explore outlet stores for bargains on clothes you want.
- Generic drugs: If you are on a maintenance drug, see if the generic works just as well. You can save money over the year by going with the generic version instead of the name brand.
- Save your change: Get a jar and save all of your change in it. While it seems insignificant, over a year this change can add up to a hefty amount of savings.
- Coupons: Coupons can be a great way to save money. Being organized, and sticking to your shopping list can save you hundreds of dollars that can be put into your savings.
- Move to a cheaper location: To save the most, consider moving someplace less expensive until you save enough. Every dollar you save on your current housing can be put towards your future housing.
- Cut the cord: If you haven’t looked at your cable bill in a while look to see if you are paying for channels that you never watch. You can save even more money if you cut the cord entirely and close the account.
- Sell collections: Often people collect items thinking they will bring them millions. Usually this doesn’t happen though. If you have a collection of questionable value sell it and put that money into your home fund.
- Borrow from parents: Some of us are lucky enough to have affluent parents. See if they will agree to a formal or informal loan, or acting as a guarantor on your loan.
- Be creative: Instead of buying gifts for friends and relatives, make them. It’s more heartfelt and also saves you money. Be careful not to get into the trap of actually spending more to make than if you decide to buy though.
- Entertain at the house: A night on the town can be a significant cost. Invite people to your house and entertain there instead. Not every fun night has to cost a fortune. Play cards, barbecue, enjoy the time.
- Fix instead of replace: If you can fix something instead of buying a new one you can often save a lot of money. Turn your handyman skills into money.
- Sell your stuff: Go through your closets and storage areas and put together a yard sale. Put the funds raised into your new home account.
- Game thrifty: If you are like most gamers, you have saved every game you have ever bought. Start putting these towards new game purchases. Both Walmart and Gamestop have trade in systems.
- Close club memberships: Look at the club memberships that you have. If you don’t go to someplace or use something, then cancel the membership and put that money each month into your savings.
- Buy in bulk: If you can, buy groceries and household supplies in bulk, this saves money that can be added to your home fund.
- Avoid expensive toys: Modern society says that parents have to spend as much as possible entertaining kids. Consider how often they end up playing with the box instead and go for the inexpensive toy.
- Eat at home and bring bag lunches: Eating out is a large expense over time. Prepare your own foods and bring bag lunches to keep your costs down.
- Heating and Air Conditioning: Ensure your HVAC is in good working order, your insulation is good, and your home is sealed. One of the main costs of your electric bill is heating and air conditioning your home. Often your power company will send out professionals to tell you what to fix.
25 Brilliant Lifestyle Habits You Need to Save
As with any huge task you will need to make changes in order to accomplish it. These lifestyle habits can put you on the path to success. Remember that reading tips is not enough, you have to put them into action.
A home loan requires 5% of the value of the loan down at a minimum. This means for every $100,000 of the home value you wish, you need $5000. This is no small sum of money to have to come up with. Changing your lifestyle is one of the best ways to reach your goals.
- Buy inexpensive versions: No matter what you are buying, look for the bargain brand version. It may not be flashy, but each dollar you save is one closer to your new home.
- Prioritize: Most people don’t have a trust fund to just put into a new home. This means that you have to prioritize where your money goes. Choose to save over by the new car, or go on vacation.
- Don’t keep it a secret: Let everyone know you are saving towards a home. This helps them realize you aren’t being antisocial or skipping things because you don’t want to go. It’s easier to save when you aren’t being talked into going to the expensive restaurant.
- Occasionally splurge: Build into your budget and plans the occasional splurge. It’s always easier to get past giving things up if you occasionally reward yourself for the effort. So build a small extravagance into your budget as a pick me up from time to time.
- Never buy on impulse: For any purchase that can impact your home fund or ability to save, make sure you don’t make the purchase without time to think. Often a 30-day rule will give you enough time to consider if you should.
- Master the list: When you go shopping make a list and keep to it to stay on budget. This keeps your purchases on track and stops you from wasting money.
- Look at your insurance: Look at your existing policies and see if you can save money. By looking into this you can transfer this money into savings for your home. Look at home, auto and life policies to find savings.
- Give up Starbucks and soda: Get a jar and every time you would have spent money on Starbucks and soda, put it in the jar. At the end of each month take the jar and deposit the money into your account. You’ll get a visible reward for your thriftiness.
- The cost of smoking: If you are a smoker just by quitting you can save almost $9,000 a year. That’s if you are only smoking a pack a day. That means in two years, doing nothing else, you can save 10% of the median cost of a home.
- Save energy: It might not save you thousands but being energy conscious can save you money in the long run. Turning your thermostat a few degrees different and remembering to turn off lights will put money in your account.
- Cancel subscriptions: Take a look at magazine, website, and streaming subscriptions that you have. If you don’t need or use them, cancel them and put those amounts into saving for your home.
- Make a goal chart: Sometimes it’s useful to make a chart as a visible reminder of how much you have saved and how much left you need to save. Update it regularly to give your family more motivation.
- Take advantage of public transportation: If you work near public transportation you can save gas money by taking advantage of it. Compare the cost to your budget and roll any savings into your bank account.
- Carpool: similar to taking public transportation, see if anyone at your workplace wants to carpool. For each member of the carpool you save that many days of gas and maintenance costs for your vehicle.
- Bring food along to events and trips: Try to limit your eating out while traveling and at events. If you can bring along your own food and snacks you can save money on each event.
- Look at your cellphone bill: Look over your cellphone bill, and call your cell company. Cancel any services you aren’t using, and reduce those that you aren’t using to the full extent of what you pay for.
- Avoid a new car: If you absolutely need a new car, avoid a brand new car. Buying a slightly used car is a better investment.
- Watch the speed limit: A speeding ticket can cost hundreds of dollars, more if it is for a high rate of speed. So watch the speed limit and avoid the fines, it will also help your gas mileage.
- Employee discounts: Look into every discount that is available through your employer, credit union, and professional organizations. It’s not enough to just get the savings, compare the cost and put the difference into your fund.
- Live closer to work: If you are able think about renting a place closer to your work while you build up your savings. This only works if you can move without incurring costs that erase this savings.
- Live with family: If you have an understanding family member, put your stuff into storage and stay with them. Place all of your current living expenses into your house fund.
- Take in a renter/roommate: Renting out your spare room can give you money to put straight towards your house fund.
- Add a second job: One way to save is to increase your income. If you find a second job, add these paychecks directly to your bank account.
- Live off one income: If you are a two income family, live only off of one of the partner’s income. This will make life more difficult, but saves a lot of money in a short period of time.
- Make money from your hobbies: If you have a hobby it may be lucrative. Look into selling your skills to others to raise money for your home deposit. If you don’t have a hobby, consider general labor for people.