Are you stuck in a cycle of getting a paycheck and spending it all on rent and utilities? It seems like you’ll never be able to save up enough for a down payment. Without that chunk of money, your dream of home ownership will be exactly that- a dream. Nearly all lenders who deal in conventionally-financed home loans require some sort of a down payment up front before they’ll approve your mortgage. That means you’ll need to come up with between 5% to 20% of a few hundred thousand dollars, if you buy a house within the median home price range here in Southwest Florida. It may sound impossible, but it isn’t! Here’s a few expert tips and tricks to get you started saving:
#1 Set up automatic payments to a savings account. If you have a hard time saving money, you can set you your bank account to do it without you! Set up automatic payments at your bank so a portion of your income goes into savings. Decide how much you want to save ahead of time, even if it’s $100, and then automate it.
#2 Forgo high-priced coffees and eating out. You may be surprised, and downright horrified, to realize how much money you spend every month stopping for coffee and going out to lunch. Make your own coffee at home and bring your lunch to work everyday. You can save a few hundred dollars a month this way, even if you still occasionally go out to eat for dinner.
#3 Pick up a side job. What’s the easiest way to have more money? To make more money! There are a lot of ways to make a little extra funds in your free time, like driving for Uber. Just be sure all of the income generated from this goes right into your account dedicated to buying a home.
#4 Buy generic. Don’t let your habit of picking up the same labels get in the way of some serious savings. Many times, generic products at the grocery store are half priced and just as tasty! After each trip to the grocery store, make sure that you count up your savings from doing this and you’ll be shocked at what you see.
#5 Look for cheaper alternatives to your bills. Whether it’s your car insurance or your cell phone bill, you may be able to save hundreds every month just by shopping around and switching companies. What can you do with that extra savings? Send the funds right into your savings account, of course!
#6 Clean and sell. Go through your closet and garage and set aside anything you no longer use. You can make money and clean at the same time. As an added bonus, it’ll be easier to move when you do finally purchase a home!
#7 Take a hard look at your monthly subscriptions. If you have a subscription to Amazon Prime, Netflix, Hulu, Audible, HBO GO, a few magazines, and others, you’re spending a big chunk of money every month on entertainment. Do you really need them all? Don’t forget other automatic monthly payments, like your gym membership. Purge any subscriptions you don’t really use.
None of these are a “get rich quick” scheme, which is exactly why they will work. By storing away a few hundred dollars a month, you’ll be at your money goal quicker than you ever thought possible! As you get close, you can begin to think about what kind of house you want to buy. It may be one on the market currently, or you could even opt to build a home through Beattie Development’s RRB Homes Collection. They are designed and developed especially for first-time home buyers like yourself. Feel free to browse our floorplan options or even reach out to our New Homes Sales Manager, Ryan Clausell, at ryan@beattidev.com.