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Congratulations! You’ve made the decision to invest in yourself and become a homeowner—now it’s time to start saving for your home’s down payment. By making minor changes to your spending habits and smart money decisions, you’ll have your nest egg ready before you know it. At Starlight Homes, we believe that everyone deserves the chance to make their dreams of homeownership a reality…without breaking the bank.
Here are just a few ways that you can start saving for your down payment with little to no stress:
Pay Off Your Debt
Before starting to put money away, come up with a plan for how to cut down on your existing debt. It will help your credit, as well as make it easier to save money in the long run. Being able to focus on saving without having to ration out payments for other debts as well will only make the process easier.
Stick to Your Savings Plan
Pick an amount to save each month and stick to it. Either automate your savings so that the money is pulled from your account without you having to worry about it, or pay yourself first each time you’re paid. Whichever you prefer, make it a priority to meet your monthly goal.
Revisit Your Expenses
Take a close look your current expenses and see where you can make adjustments. If you go out to eat lunch 3 days a week, try bringing food from home instead. If you like to shop or take trips, know that you’ll have to cut back and put the money that you would have spent on those things in your down payment fund. Making these little changes will have a big impact on how quickly you’re able to save.
Save All Windfalls and Unexpected Cash
Any additional money that you come across while saving for your down payment should go towards your down payment fund, including income tax refunds, monetary gifts, and even a raise. Instead of spending the money or including it in your budget, just put it aside and pretend it doesn’t exist until you’re ready to buy.
Think of Ways to Gain Extra Income
There are plenty of ways to make a little extra money that don’t necessarily mean getting a second job. In today’s society, there are companies whose models are built around people taking charge of their own finances, building their own schedules, and being their own bosses. If you have a hobby that could be turned into a moneymaker, utilize it. Look into doing some freelance work like tutoring. There are an endless number of opportunities to pull in extra cash and every dollar is a step closer to the dream.
Saving up for your down payment is a major step in your home buying journey and, more than anything, a test of will and discipline. Having your finances in order before purchasing you Starlight Home will only help make keeping them in order after you’ve moved in easier.