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For most people, a down payment is the biggest savings goal you’ll ever try to reach. It can be intimidating, but of course it’s worth pursuing to make your home ownership dreams come true. Let’s go over some tips to add funds to your savings account without missing out on the parts of your life that you’ve grown used to!
1. Set a Timeline
When do you want or need to own a home? Everyone has different goals. Is this something you’ve always wanted to do by age 40? Or maybe the time you’re ready to have kids? Maybe it’s as simple as you’re tired of renting and ready for independence by next spring. The first step is to get serious about the timeline so you can get serious about your budget!
2. Create a budget for the timeline you’ve set
Take a look back at your expenses from the last 6-12 months and be honest about what you spend. Look at your current cost of housing, car payment, and don’t forget your subscriptions! The first step is understanding the money you spend on the things you need to keep a roof over your head, your credit in good standing, and your family cared for.
3. Look at your major purchases
Is your paid off car getting you safely from one place to another? Great! Keep it going. Does your phone work perfectly fine? Then there is no need to spend money on the latest technology. If you need to replace your phone or a major appliance, consider a more basic or gently used model. Make the purchase you need to make to sustain your life, but know that you’ll put the difference directly into your savings account.
4. Look at your smaller necessities that add up
Everyone is examining their groceries bills lately. If you haven’t yet, you can find savings by buying generic brands instead of name brands. Switch up your meal prep by incorporating in-season produce. Plan meals based on what’s on sale at your local grocery store. For what it’s worth, it’s okay to shop at multiple grocery stores if you know one consistently has better deals in some departments. You still get healthy meals (and the treats you need to get you through the week!) but with some left over money. If your receipt says “amount saved” at the end and shows you the discounts, place that amount directly into your savings account!
5. Consider your subscriptions
How many subscriptions do you have? Are you sure? How many do you need within the timeline that you set? Do you have enough time to watch Netflix, Hulu, and Max? Stick to one for the year. Maybe take a family vote of favorite shows. You still get to unwind at the end of the day enjoying your shows, but this way you’re more focused on one or two at a time. Place the money from cancelled subscriptions into your savings account and watch how quickly it stacks up toward your goal!
6. Reflect on how you spend money socially
It’s important to maintain friendships and make memories with the family, and we often do that by meeting up for drinks or breakfast at the diner, right? What if instead, you offered to host your friends and ordered a pizza? What if you had your family over for a homemade brunch? You still keep your social life, which is important! But you get to save money while you do it. And you don’t have to yell over anyone’s music but your own! Take the money you think you saved on drinks and place it directly into your savings account.
The main takeaway is that it’s important to consider what you’re really spending money on and see if you can do it for less. If you’re spending money to be social, switch to spending time with your friends in the park. If you’re spending money on the tools you need at work, try to keep them a little bit longer. And always put that money you were going to spend elsewhere directly into your savings account. When you’re ready, we’ll be glad to be in touch. Click to contact Austin Moyer Team at Coldwell Banker Custom Realty or call 585-505-7012. We look forward to working with you!
