You’ve saved up for an outfit, a vacation, maybe even a car, but saving for a down payment on a house is a completely different story. A savings goal in the tens of thousands of dollars can seem out of reach as a first-time homebuyer, but it’s more attainable than you might think. Give yourself time and with these helpful strategies you can reach your down payment target without necessarily pinching pennies.
Cut back on expenses. The obvious starting place when saving for a down payment is cutting costs. Look at the costs in your budget and cut out the ones you wouldn’t miss. You don’t need to cancel every subscription and service to save. Just remember, this doesn’t have to be a permanent change but a temporary sacrifice in exchange for your future home sweet home.
Now, look at the expenses you’re not willing to give up. Talk to those providers and see if they can provide discounts or rate reductions. If that doesn’t work, shop better rates. Maybe you can switch cellphone providers or insurance companies? Do their competitors offer an incentive or discount for becoming a new customer?
Mindfully spend. Prioritize your spending by matching your savings to your discretionary spending. Every time you spend money on something you want, transfer the same amount to your savings account. By doubling the amount that is leaving your checking account, you’ll be more conscientious about the purchases you make.
Adjust your timeline. Saving for a $60,000 down payment in a year’s time is a lot harder than saving that same amount over multiple years. If you want to buy a home and still enjoy life, you have to play with your timeline.
Look at how much money you’re willing to save each month without drastically changing your budget. Take your goal amount and divide it by the amount you can save each month. If you can save $1,000 per month and want to reach $60,000, it will take you 60 months to do so (or five years). Decide what is important to you and by thinking long term, you can accomplish your goals and still live your best life.
With these strategies we are sure you’ll be kicking back and enjoying your new McAdams home in no time. We offer specially curated communities in the Wilmington Area of North Carolina, click here for current incentives. Contact us today to get started on your new home journey.