4 of the Biggest Changes You Can Make While Saving for Your First Home
Thursday, August 20, 2020, 6:00 AM | Leave Comment
If you’ve decided that you want to enjoy the comfort of having your very own home to live in, then you’re going to need to focus on saving some money.
Most homes require a down payment between 5 and 20 percent of the overall cost of the purchase.
This is likely going to require you to make some of the four changes below to ensure that you save up enough money to purchase your new home.
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Limit Junk Expenses
Before you can really start to save money each month to put towards the purchase of your new home, you’ll need to know where you’re currently spending your income. Take some time to go back through your bank statements and track your spending. You may even just want to devote a full month to recording what you buy. Then, categorize each expenditure into necessities or junk expenses. Junk expenses are things like entertainment and subscriptions to services you don’t use. You’ll want to put a limit on the amount of money you spend on these junk expenses each month.
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Your Current Living Situation
If you’re currently living in a place where you’re not paying rent, great. You can really put some money away to save for that new house. However, if you’re currently paying rent, then you may want to consider downgrading to a smaller place. There are luxury apartments for rent that can give you many of the amenities that you want without the large price tag. The less money you spend monthly on rent, the more money you can put in your savings account.
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Eat In
One hefty expense for many is the cost of eating out of their home. While it’s definitely convenient, it can hurt your savings effort. You should focus on trying to prepare most of your meals at home from food that you buy at the grocery store. You may be surprised at how much money you can save each week by simply preparing your lunch and dinner at home instead of eating out.
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Consider A Side Gig
If you really want to make some headway in your savings process, then you need to consider getting a side gig. There are many of them out there such as Uber and Lyft that are friendly to newbies. Simply invest some time each week to earn some extra money you can put towards your home purchase.
When it comes to purchasing a new home, it can be quite expensive. It’s best to have money set aside before you start searching to ensure that you can find a home that you’ll love and one that fits within your price range. You should be fully prepared to undergo the four changes above as they will bring you even closer to purchasing your very first home.
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