Tips to Save Money to Afford Your First Home

Are you looking to buy a home but aren’t sure how to come up with the money for such a large purchase? Have no fear, with a bit of saving and a few money savvy tips, you’ll be on your way to home ownership in no time.

Review Your Spending

First, you’ll want to make the time to review your current spending habits. We suggest reviewing or writing down at least one month’s worth of your most recent expenses. Noting each expense specifically will help you understand where all of your money is going. This means from gas to groceries to subscription plans, write it down. We mean everything.

Cut Your Costs

Next, cut any unnecessary costs. Do you currently have a monthly subscription to a certain service that you aren’t using or maybe use once a month? It’s time to cut it from your expenses. Or how about daily coffee runs or getting takeout a few times per week?

Consider opting for a cheaper alternative such as making your own coffee and meals at home. You may be surprised how quickly your bank account adds up just from saving a few dollars everyday.

Consider Your Savings as a Bill

Just like you pay your electric bill, you should be doing the same with your savings. Whether you want to aim for weekly or monthly savings, make it a bill you have to pay. If you don’t think you’ll be able to commit to this, contact your bank to make automatic deposits into your savings account.

This is especially useful for those who have difficulty managing their money and committing to a savings plan.

Increase Your Income

There’s no easier way to save money faster than by gaining more income. Picking up overtime hours or asking for a raise can help you earn more money each month. But if these aren’t available, there’s no shame in getting a side job.

Picking up freelance work, working for a ridesharing company, or even just taking someone’s dog for a walk can all be simple ways to earn a few extra bucks.

Skip the Extras

Unfortunately, saving money can come with having to sacrifice a few things. Those $50 golf outings every weekend or that yearly vacation you take that adds up to a few thousand dollars will make your savings account go up quickly. While it may not be fun to skip out on these things, just remember that the end goal in mind is to buy a home.

Now that you know how to save money, next you’ll need to know how much money you should be aiming to save. With this house payment calculator you can gain a better idea of how much of a down payment you’ll need to buy your first home and begin saving.