Here are some great tips on saving for your first home!
1. Set up an automatic transfer.
Before you decide on what you are going to do for the weekend, make sure you set up an automatic transfer to your savings account. The less you have to think about saving, the less likely you will be intimidated by it. Let the money transfer before you even see it go into your savings.
2. Move back home with your parents.
Many people hate this advice, but it can be extremely cost effective, especially if you are spending more than 30 percent of your income of income on housing. Remember that everything is temporary. If you are able to convince your parents that you would like to move back home to save money for a great investment like a home, you have a greater chance of being able to stay with them and save big bucks. Just make sure that you don't spend all of your savings on going out all of the time tryine to get away from those parents that have kindly let you live with them to save money for a house.
3. Cut back on significant spending.
Find ways to save more and sacrifice less. For example, cutting back on your latte from Starbucks can save you hundreds of dollars. A venti Caffe Latte from Starbucks costs on average of $4.95. The average full-time employee works 213 days per year. Consuming Starbucks everyday can cost you $1287. If one bought a 240-serving bin of Folgers with 20 gallons of milk and one bag of granulated sugar, you would be spending about $100 You can save a total of $1187 each year with more servings to spare just from making coffee at home.
4. Find a roommate.
If you have a spare room, find a roommate to help split the costs of housing.
5. Find a second income.
You will be amazed how a few extra dollars at a time will help you. I’m sure we know how annoying tiny fees from banks siphon our accounts. Now, you have the same power to replenish your accounts. If you are working, see if you can take a part-time job. Even working as an Uber driver, where you can set your own hours, every few weekends can help buff your bank account.
6. Search for a starter home.
It would be nice for your first home to be a $300,000 house. Unfortunately, that cannot happen to everyone. Sometimes, thinking about buying less means more. You can always upgrade into a bigger home, when you have the funds.
7. Find the same home in a different neighborhood.
You can save money and buying power by doing research on neighborhoods and looking for a house in a good transitional neighborhood. A good transitional neighborhood is a neighborhood where the houses are at a lower costs, but have been rising value in recent months or years. Check out my website or contact me for more information.