One of the biggest achievements of being an adult is purchasing your first home. The feeling of ownership – that you’re no longer going to be stuck renting from someone else – is amazing, and not having to rely on anyone else when you want to paint or redecorate is worth its weight in gold.
Buy while nearly everyone aspires to purchase their own home, the reality is that it isn’t always that easy. Becoming a homeowner can mean putting down a lot of money towards your new residence, a large sum that some people have real trouble saving.
If you have dreams of owning your own home but are finding yourself having trouble getting started, we’re here to help. In this article you’ll find a ton of great advice and practical methods for setting aside a little extra money for your down payment.
Taking On Some Extra Work
When you break it down into its simplest form, there are two different ways to add to the money you’re saving for a home – to earn more or to spend less. Depending on your schedule and abilities, if you’re able to pick up some extra work – whether through your normal job or through a side gig like freelance writing – all of that money will be additional to what you have budgeted meaning that it will be a lot easier to set aside.
Identify Your Biggest Expenses
If you think it’s more practical for you to save money by spending less, the first thing that you need to do is to look at your monthly expenses and identify which areas consume the most of your income. While you may not be able to do much about fixed payments such as rent, utilities, and your vehicle, other things like dining and entertainment may have a little bit more wiggle room.
Look at Reoccurring Charges
Another area where many people find it easy to save some money each money is their reoccurring charges. These are anything that you get billed month after month, with some of the most common culprits being gym memberships and online services. More often than not, by analyzing exactly what they’re spending money on, people find reoccurring charges that they don’t actually need to pay. By cancelling them, that money which was being wasted can be allocated towards your new home fund.
Of course not all home purchases need to involve a large amount of money down. There are some loans – especially VA and FHA-backed ones – which can require as little as 3% down. Depending on where you live, that could be a much more reasonable amount of save. But be warned – on top of that 3% of the purchase price, you’ll also be responsible for other taxes and fees associated with closing on the deal.
All in all, there’s nothing wrong with having the dream of home ownership, but it’s important that you’re realistic about how to achieve it. Buying a home can be expensive, but if you’re prepared with a well-planned strategy for saving a little bit of extra money each month, you’ll be on your way to your goals in no time at all.