Saving a down payment for a house can be difficult. In fact, it's one of the main obstacles that keep some people from buying their first home. But saving up a sizable down payment doesn't have to a prevent you from achieving your dream of being a home owner. Here are four easy things you can do to help you save up a payment.
Set Up a Separate Account
If you are going to start saving up for a down payment on a house, you should have a separate bank account that is designated for nothing other than your down payment money. If you put your down payment money in your normal checking or savings account, it's too easy and tempting to spend that money on bills and other things. It is also difficult to keep track of how much you have saved for your down payment. Make it a priority to set up a different account and never touch the money that is in there.
Cut Out Some Large Bills
When you save for a down payment for a house, you will probably need to make some sacrifices. For the first month or two of your saving, make a log of how much you spend on expenses and activities. How much money do you spend each month going out to eat? Do you have any luxuries that you can cut out while you are saving? Go through your records and see where you can make cuts. Then reduce those expenses and put the money saved into your down payment account.
Set Up an Automatic Contribution
Many banks these days have a service where they will take out a certain amount of money each month and transfer it to a savings account automatically. If you have your paychecks deposited directly, you can even set up a system where a certain amount of money will be deducted from your paycheck and deposited into an account, as well. You may notice the financial shortfall for the first couple months, but after awhile, you won't even notice having less money, and you will be building your down payment account quickly.
Deposit Any Lump Sums
Do you ever receive large sums of money throughout the year? These sums can be Christmas bonuses, tax returns and other sums of money. You may be tempted to spend this money on something fun, but deposit that money into the account you set up to save a down payment for a house instead.
With all of these ways to save up for a down payment on a house, you'll see your savings increase faster than you may expect. It's a great feeling to put a sizable down payment on a home. Besides, all of the sacrifices you make in order to achieve your dream of home ownership will definitely be worth it in the end.
Set Up a Separate Account
If you are going to start saving up for a down payment on a house, you should have a separate bank account that is designated for nothing other than your down payment money. If you put your down payment money in your normal checking or savings account, it's too easy and tempting to spend that money on bills and other things. It is also difficult to keep track of how much you have saved for your down payment. Make it a priority to set up a different account and never touch the money that is in there.
Cut Out Some Large Bills
When you save for a down payment for a house, you will probably need to make some sacrifices. For the first month or two of your saving, make a log of how much you spend on expenses and activities. How much money do you spend each month going out to eat? Do you have any luxuries that you can cut out while you are saving? Go through your records and see where you can make cuts. Then reduce those expenses and put the money saved into your down payment account.
Set Up an Automatic Contribution
Many banks these days have a service where they will take out a certain amount of money each month and transfer it to a savings account automatically. If you have your paychecks deposited directly, you can even set up a system where a certain amount of money will be deducted from your paycheck and deposited into an account, as well. You may notice the financial shortfall for the first couple months, but after awhile, you won't even notice having less money, and you will be building your down payment account quickly.
Deposit Any Lump Sums
Do you ever receive large sums of money throughout the year? These sums can be Christmas bonuses, tax returns and other sums of money. You may be tempted to spend this money on something fun, but deposit that money into the account you set up to save a down payment for a house instead.
With all of these ways to save up for a down payment on a house, you'll see your savings increase faster than you may expect. It's a great feeling to put a sizable down payment on a home. Besides, all of the sacrifices you make in order to achieve your dream of home ownership will definitely be worth it in the end.
SHARE
