Down Payments: 5 Ways To Save More
Saving for a down payment on a home requires patience and self-discipline. While putting money away with every paycheck is one way to reach your goal, a little imagination can add even more funds to your savings account. Here are five creative ways to save more money for your dream home.
When was the last time you got an auto insurance quote? Changed phone services? Requested a lower interest rate for your credit cards? Little changes could make a big impact over time, especially if your credit score has improved recently.
Cut the Cord.
The cable cord that is. According to Slate’s calculator (which you can find right here), you could save around $400 a year if you eliminated cable and just paid for Internet and services like Hulu Plus, Netflix and Sling. If you can live without cable or Internet, expect to save at least $1,000 a year, but possibly more.
Keep the Change.
Pay with cash for everyday purchases. Whatever change is left over, put it in savings. If that daily latte costs $3.50, save the 50 cents. That’s $2.50 a week that goes into savings. Over a year, that could amount to $130.
Start an Online Store.
Whether you’re crafty or have a lot of collectibles to sell, there’s an online platform for you. Sites like eBay and Etsy are simple to maintain and require very little effort to market your stuff. If you want to go all in, Shopify and BigCommerce allow customers to build their own ecommerce websites.
Crowdfund Your Down Payment.
You may have heard of sites like Kickstarter, GoFundMe and Indiegogo to raise funds for recording albums, filmmaking and even to make a potato salad. However, a growing trend is crowdfunding the down payment for a home. Newlyweds are opting for financial gifts in lieu of a wedding registry. Niche sites like HomeFunded.com are catering to this relatively new phenomenon, allowing friends and family to pitch in what they can to help with the homebuying process.
Have you found creative ways to save for a down payment? Share your tips below in the comments.
Our New Home Specialists can help answer any questions regarding down payment assistance and the homebuying process. Contact us today!