Save now, reap benefits later
Realizing your home ownership dream, especially for that first house, starts by saving. In fact, if there’s no first step, there will not be a day when you’re walking in the front door of your own home.
Saving is not easy, I know. It’s always more exciting to spend. But spending does not just cost in the short-term. It costs in the long-term, too.
In a study on the subject, more than half of the potential buyers cited saving for a down payment as a bigger challenge than having the required credit score, the income needed, or being able to afford the cost of a house.
So, how do you begin?
I’ve got some ideas and so do the folks at realtytimes.com, so let’s get started:
Coffee can nickel-and-dime you to death. Guess what? You can brew and drink your own coffee. Also, eat your own lunch from home. I get you may have a serious habit of going into the national brand coffee shop to jump-start the day, but at $4 a pop, or more for a specialty drink, is it worth it when you have bigger goals in mind? Same with lunch. It’s too easy to blow 12 bucks on lunch. Do that even 10 times in a month, and that’s $120. Hurts more when you think of that way, doesn’t it?
TV and cell phone. This is more challenging. Those cell phone companies, and those satellite and cable providers can be a major pain in the neck. But look at your bills. Odds are, you will find places to cut. How many channels do you have that you never watch? Could you be getting a better deal? Almost always, you could.
Found money. In the happy event of a raise, put all of it go directly into your savings and not toward a new car or a vacation. You’ve been living on what you currently make, keep doing it while pursuing your home ownership goal.
Grant-eligibility. Is it possible you could be eligible for a down payment grant and not even know it? There are many programs out there than can provide substantial financial assistance. Ask your REALTOR® for help finding these valuable resources.
Banking. Sometimes by opening a new account and maintaining a certain balance you can receive a special rate and avoid certain fees. So do a little shopping. Also consider setting up an auto transfer from your checking to savings account. You won’t miss what you don’t see. This can be a great way to start building that down payment.
The sooner you start saving, the sooner your home ownership dream comes true.