Easy Lifestyle Changes to Help You Save for a Down Payment, Faster

Deciding to go from renter to home buyer is a huge step.  It can be a bit intimidating and overwhelming, though, if you’re not prepared.  You may even question whether or not you’re ready to make the leap, especially when it comes to finances. It’s totally possible, however.

With a few simple lifestyle changes, you can save money, faster, for a down payment on a new home.  Some of these tips we’re going to share may seem like a sacrifice, but remember, it’s only temporary and will help you toward your long-term goal of becoming a homeowner.  So, let’s take a closer look at a few ways you can start saving, today:

• Reduce your rent – Paying rent is probably your greatest expense, at the moment, so it only makes sense to reduce this cost as much as possible if you want to save for that down payment.  You may want to consider temporarily relocating to a less expensive apartment, or maybe you could take in your own renter to help supplement some of the cost.  Don’t be afraid to get creative.  If you’ve been an excellent tenant, you might even consider talking with your landlord about reducing your rent.  It’s certainly worth a shot!  If buying your own home is your dream, then you can make it happen.  Just keep reminding yourself – it’s only temporary.

• Create a savings account – While this might seem like a given, it’s important to create a separate savings account specifically for your down payment.  This helps to make your goal more focused and less likely to be touched.  Add a percentage of each paycheck to this account as well as any extra or unexpected income, like money from a garage sale, birthday cash or bonus checks.  Before long, it will grow into a nice, strong sum.  

• Get an additional source of income – More money coming in is certainly never a bad thing.  If you can take on more hours at your current position, take advantage of the overtime.  If this isn’t an option, consider finding a part-time job, or perhaps you have a specific talent that you could put to use in the form of a small business.  Again, you might be sacrificing short-term, but when you go to put in your down payment, the extra work will be well worth it.  

• Sell a few expensive items – Look around your home.  You might be surprised to find that you own quite a few items that have gone untouched or unused that could sell for a fair amount.  Do you really use all four flat screens?  How about that second stereo system you’ve been storing in the closet?  Maybe you live next to a train and really don’t need that nice car sitting out in the driveway.  These are all examples of things that can be turned into cash, and eventually, your new home.  Remember, it’s not items you’re after, it’s a lifestyle.

• Get rid of unnecessary expenses – This one goes without saying, but all extra expenditures need to go.  Take a moment to really look at what you’re spending each and every month.  From that daily, specialty coffee, to the new clothes, media subscriptions, gas, dinners out, gym memberships – we guarantee you’ll find several expenses that would be better turned into savings.  

All of this can be easily done so long as you keep your eye on the end game.  Yes, you may be sacrificing temporarily, but just think of how incredible it will feel when you make that down payment and are resting comfortably and happily in your very own home.