One of the greatest impediments to home ownership, even for those individuals who can afford it is the lack of savings for their down payment. Therefore, if you plan to purchase a home someday, one of the main things you’ll need to do is to save money, which can be done in different ways. Let’s discuss some of these methods.
Put your savings into a bank account. This means that you’re encouraged to put some of your savings allotted for your down payment alone on a separate bank account. Therefore, you need to allot a certain amount from every pay check and deposit it into your account.
Avoid using your credit card. When you make any purchases, try as much as possible to pay in cash rather than using your credit card. In fact, you can leave your credit card at home so that when you shop, you’ll not get tempted to make unnecessary purchases especially those that you can’t afford.
Ask help from your family or friends. As of January 1, 2009, the federal government allows a person to get up to $13,000 from a single donor tax-free annually. Therefore, if you have family members or friends who are willing to gift you some cash for your down payment because it’s actually free money.
Look for other ways to earn money. If you still enough time and energy after your full time job, you can take on an extra job as this will help you save more money. Another way is selling some items that you no longer use through a garage sale or through some online selling websites commonly available these days.
Use printable and online store coupons. Whenever you shop for groceries, home furniture, clothes, shoes, gadgets, and other items, you can make use of printable and online store coupons to help you save money. Although you only save a few cents for each purchase, those cents can eventually add up to your savings.
Live a simpler lifestyle. This means that you need to reduce your living expenses through eating less in restaurants and cooking more at home, watching movies online than going to movie theaters, making your own coffee than buying from local cafes, riding trains, walking or cycling than driving your own car, and the like. You’ll be amaze by how much you can save by doing these simple lifestyle changes.