SAVING FOR A DOWN PAYMENT IN 2020.

Here are five simple tips for keeping your spending in check and building up your savings for a down payment, closing costs and moving expenses.

1 SEPARATE SAVINGS, CHEQUING ACCOUNTS

Don’t transfer money from your savings account to your chequing account unless it’s an emergency. If you find yourself doing this often, consider having a chequing and savings account at different financial institutions. It takes longer for the transfer to go through, and the extra barrier can help you avoid unnecessary purchases.

2 AUTO DEDUCTIONS HELP FOR SAVING

Auto-deduct savings from your paycheque each month. If your employer offers direct deposit, have your deposit split into a savings account and a chequing account. If you are paid biweekly, depositing $150 from each paycheque will net you almost $4,000 per year.

3 STOP, WAIT BEFORE BUYING ONLINE

Leave online purchases in the cart for 24 hours before checking out. You will either forget about them or have more clarity on whether you need them.

4 MAKE AN ACCOUNT FOR THE DOWN PAYMENT

Create a separate and specific savings account for your down payment funds. Separating it from any other emergency fund or your general savings/ chequing account gives you a clear vision on where you’re headed, how much you’ve saved and reminds you of your goal. Separating it also helps stave off the temptation to dip into those funds for other purposes and will help you stay on track.

5 SET A BUDGET, AUTOMATE TRANSFERS

Budget and automate. Make an effort to budget the amount you can afford to put toward your savings, then see how you might increase it. And create an automatic deposit to move funds into your down-payment savings account. Not having to stop your day and move that money is helpful. It also ensures the funds don’t linger where you might be tempted to spend them rather than push forward toward your goal of home ownership.