Tips for Saving for a Down Payment on a Home

saving for a down payment

Are you qualified to purchase a home but need to save up for the down payment?  Depending upon the particular loan program, you may need 3.5% to 20% for a down payment.   (For example: If a purchase price of a home is $200,000, you would need:  $7000= 3.5% to $40,000= 20%).

Since some buyers struggle to come up with the down payment, here are a few interesting tips to help you get started with your savings:

Stop going to expensive coffee shopscoffee

That’s right!  That daily caramel macchiato adds up.  Think about it… Say you are a coffeeaholic and need your daily fix.   A large can be about $4.50.

Let’s calculate:   Multiply $4.50 by 5 days in the week and then 4 weeks in the month.  You would save about $90 a month/ $1080 a year!

 

Pack you own lunch

Break out the brown bags… ok… the chic lunch tote… and pack your own lunch.    Nowadays, lunch at a fast food pack you own lunchjoint would cost around $7.00 for a meal.  If you are at a restaurant, it could cost up to $20.00 (or more).   Go to the supermarket and buy some carrots, celery, some apples, a can of tuna (preferably low sodium), make some homemade iced tea…etc.  Instead of $7.00 to $20.00, it may only cost you $4.00 per meal.  In addition to saving money, you will be eating much healthier.

Let’s calculate:  Take the average cost of a lunch out at $13.50 and minus the $4.00 to pack your own lunch.   Multiply $9.50 by 5 days in the week and then 4 weeks in the month.  You would save about $190 a month/ $2,280 a year!

 

Go au natural

This may be more geared toward the ladies but I do know men who enjoy polish and a pedicure.   I have au naturalgirlfriends who must go for their mani/pedi every month.  Some just get the polish while others get gel tips or acrylic fake nails.  Why not give your nails a breather!   On average, a mani/pedi package would cost $45.

Let’s calculate:  Multiply $45 a month by 12 months in a year. You would save about $45 a month/ $540 a year!

 

Cut coupons and look for discounts

With the internet, there are numerous sites to ‘clip’ coupons, get coupon codes, sign up for discounts or better yet, get freebies delivered to your door!   Check out some of the popular sites: getitfree.us, retailmenot.com and coupons.com.   These are just a few of the MANY sites out there.    Do you need some extra shampoo, toothpaste or body lotion?   Why not sign up and get freebies?!    Take advantage of supermarket coupcut couponsons and it will pay off.

Let’s calculate: It’s date night and you want to stay in to save money 😉    So you head to the local supermarket to buy some Ben & Jerry’s ice cream.   Typically this will run you around $4.00 a pint.   But lucky for you, the store has a BOGO sale going on AND you have a $1.00 off 2 pints from a coupon that you clipped.   Instead of paying $8.00 for 2 pints, you paid $3.00.   You just saved $5.00.   Do that more often and you will see your savings account growing!

 

Shop at thrift stores, consignment shops, or discount retailers

Thank goodness for stores like Marshalls, TJ Maxx, Ross Dress for Less, Dollar Tree,…discount shopping

Why spend top dollar for an item at a Macy’s or Nordstroms when you can find something similar (or the same) at a discount retailer.  A Michael Kors or Vince Camuto blouse that you would buy at Macy’s for $79, you can find at a discount retailer for $29!   And that is true because I did.

A greeting card in Walgreens could be $3.00 when you can buy one at the Dollar Tree for $.50 cents.

Looking for some furniture?  Why not stop at a Goodwill, Salvation Army or a local consignment shop and see what they have to offer.   If you are handy or crafty, you can turn an old piece of furniture into a trendy new, enviable, one-of-a-kind.    Sites like pinterest.com can provide inspiration and ideas.

Let’s calculate: You can buy 10 blouses, a year, at Macy’s for $79 each which equals $790 but instead you shop at TJ Maxx and buy 10 blouses for $29 each which equals $290.   You saved $500 that year!

You can buy 20 greeting cards at Walgreens for $3.00 each which equals $60 but instead you shop at the Dollar Tree and buy 20 cards for $.50 cents each which equals $10.00.  You saved $50!

You can buy a brand new end table for $100 or find one at a local thrift store for $10.00. With some sand paper, stain or paint, and elbow grease you have a lovely ‘new’ table for about $20.00.  You saved $80!

These are just a few of the MANY ways that you can start saving money for your home purchase.

When you are ready to buy, contact Diana and she will help you through the home buying process.

 

 

 

Be Sociable, Share!