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3 Oct

3 Ways to Save a Down Payment for a Home or Any Other Big Purchase

General

Posted by: Krishna Menon

What are the best ways to save a down payment for a home? Well, we’ve concocted this list just for you! Not only can you apply them to your new home down payment saving plan, but you can also apply them to any other big money purpose in the foreseeable future. This could include:

 

  • A vehicle/RV
  • A vacation
  • Extra money to pay off your debts
  • Retirement savings

 

This is the starting step to achieving all of your financial goals. Here are ways that you can save, save, save.

Prioritize

If you often eat out, like to travel, keep up with modern technology and expensive brands, saving may not be so easy. You have to set your priorities and decide on what’s most important to you. If you really want to buy a home, then you may have to limit your spending.

 

Once you putting your home purchase on the top of your priority list, think of other ways you can cut back on spending. This will enable you to keep adding the buck to your savings account. To determine where cutbacks can be made, create a budget or seek financial expertise, maybe from a mortgage broker.

Decrease Your Debt and Interest Payments

It can be quite difficult to save if you’re paying many debts or a lot of interest on your debt. You’ll want to pay off all debts, starting with the smallest high-interest first. With the money you’ll save from your minimum monthly payment on the paid off debt, put this toward the next small, high-interest debt until it’s paid off. Then you’ll have two minimum payment amounts you can use to payoff the third, and so on.

 

You will not qualify for a mortgage if you have too much consumer debt, so this is an essential step in the process that shouldn’t be overlooked.

 

Find Cheaper Ways to Do Things

You can still have fun, just find a cheaper way to do it. For example:

 

  • Borrow books from the library instead of buying new ones all the time
  • Rent movies and watch them at home instead of going out to a movie theatre
  • Stop spending money dining at expensive restaurants, and either find cheaper restaurants, deals or simply dine more at home.
  • Adopt cheaper hobbies
  • Cut back on your clothes shopping habits. Look for sales and clearance items or find happiness in your current wardrobe.
  • Limit your expensive travels and think or travel ideas that an less expensive and closer to home
  • If you’re out with the family buy less drinks and snacks on the road. Eat at home before you go and when you return. Find fun, family community activities that are inexpensive or free.

 

With even adopting one or maybe two of these lifestyle changes, you can begin to save for your purchase in no time. The key is to resist the temptation to spend, and consider alternatives that may be cheaper.

 

At the end of the day, if a home is really want you want you need to be willing to make some sacrifices in order to put your achievement plan into action. Need help getting started? Speak to My Milton Mortgage today.