Where to Start When Saving for a Home
June 7, 2018 | Barb Huntley

Now is a good time to buy a home. The housing market is on the upswing, and they’re many homes available, making prices competitive. But are you financially prepared to buy a home? Taking these steps will help you add to your savings over the next year to be able to purchase your first home.

Cut Back on Retirement Savings – Reduce the amount you put away over the next year into your retirement accounts. Take the money you would be putting into those accounts and put it into savings for your down payment. Reminder - do not take money out of your retirement fund for your home, retirement savings are more important than your home.

Cut Out Expenses – Put unnecessary purchases to a halt. No more mindless shopping and splurging at the mall. Look for a cheaper phone bill, getting rid of cable and any other monthly expenses that are adding up. You’ll be surprised how much you can save over the next year by cutting back on your unnecessary purchases.

Find More Work – Saving for a house is a daunting task if you can’t find ways to increase your current income. That’s why one of the best ways to save is by creating additional income that you can set aside specifically for your new house. Look into getting a part-time job or freelancing out a skill you are already good at. The paychecks from your side gig can be put directly into your new home savings fund.

Pack a Bag Lunch – We mean it! Going out to lunch at work can cost on average $10/day. Do you buy a coffee every day? If so, that costs you an additional $2-4/day depending on what you buy. If you are eating out for lunch just twice a week and getting coffee five times a week that adds up to $1560 (if your coffee is only $2!) That yearly amount doesn’t include going out to dinner or drinks! Imagine if you made it a mission to eat out as little as possible? You would save thousands!
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