Purchasing a home is a major milestone to most people in the country. While homeownership is high on the checklist for many Americans, getting to the point of being able to buy a home is not an easy route. Houses are an expensive purchase, and it takes a lot of saving to be able to put down a good downpayment. Saving for your first home shouldn’t be that painstaking, but you’ll want to make some adjustments to your budget and spending habits if you’re serious about purchasing a home. We’ve put together a few tips for saving for your first house.
Figure Out Your House Goal
Before making any big moves towards saving for a home, look into what you can afford realistically. The pricier the home, the larger the down payment will be. Since the pandemic, the real estate industry has been going through some ups and downs, including a housing inventory shortage. Purchasing a home might feel more competitive and we suggest keeping that in mind when saving.
Build a Budget
Budgeting is a lot harder than you might think, but doing so will help you get a clear picture of your finances and where your money is going. Calculate how much expendable income you have after you do the math on how much money you’re making as well as what you need to spend on rent, car payments, loan payments, utilities, and other monthly bills. Then you can plan out how much money you want to spend on groceries, gas, outings, and everything out. Cut down on whatever you can in order to put more in your savings account.
Pay off Debt
Paying off debt might seem counterintuitive to saving, but having to make fewer payments in the future can be really helpful for your cash flow. Most debt accrues interest, and the sooner you pay it off, the better. According to top agent insights, this summer is going to be booming in terms of real estate. The sooner you can pay off your debts and save up, the better!
Find a Side Job
A second source of income is always a good idea when trying to save some extra cash. You don’t necessarily need to have an entire second career, since burnout is a real thing. Start with dog walking, house sitting, and other odd jobs here and there. See if you can pick up shifts sometimes at a local restaurant or coffee shop. That additional income will add up fast and help you reach your savings goal in a heartbeat!
Set Up Auto Transfers
Manually having to transfer money into your savings account is no fun and it’s easy to forget to do it. Most savings accounts allow you to set up automatic transfers. This makes saving much easier since no brainpower is involved. Based on your monthly budget, set up a specific amount that you can have transferred every month. The more you transfer each month, the quicker you’ll be at your savings goal!
Saving to buy a house should be a breeze with the tips mentioned above. Once you’re close to your goal, look up some tips for finding a realtor that you trust and hire one who can help you find your dream house!