Saving up for your first home is a big deal. Those gearing up to begin saving for their first home are likely wondering where they should start. Ideally, one should save up around 20% of a home’s total cost for a down payment, but judging by the price of a home, this can be quite a bit. For a $200,000 home, this means saving up $40,000 to put down. The best place to start is by cutting small corners, and seeing just how much you can lower your monthly budget while still keeping a comfortable living style. Cutting these small corners can give you an entirely new perspective on your spending, your saving, and how you can continue to save even after you’ve closed on your home.
4 Corners You Can Cut To Save For Your Down Payment
Starting small is always best, and even cutting these small corners can save you quite a bit of money. The average American spends around $18,000 per year on nonessential purchases, and by simply cutting out these “leisure” purchases, one could save up a complete down payment in just 2 years or less. 4 small corners you can cut to begin saving for your down payment are:
- Freeze it – For many, the freezer is for ice cream, frozen dinners, and those old leftovers only. While meal prep has become more popular, many don’t realize that anything you see in the freezer aisle can, in fact, be frozen. This means that when you see that great sale on fresh produce, you can stock up and freeze anything you’re not using immediately to save a bit of cash.
- Try making it yourself – Breads, gifts, laundry soap, and granola bars can be homemade for typically a lot less than what you’d purchase them for. Trying your hand at making your own home products can help you to save bit by bit. For breads and cakes, these can be made in batches and frozen until you need them later.
- Skip disposables – While disposables are convenient, they’re also expensive. Disposable plates, cups, bottles, and cutlery isn’t just harmful to the environment, they can also be harmful to your wallet.
- Plan out your day’s adventures – Many don’t realize just how much they waste on fuel while they’re going about their daily tasks. Planning out your day’s adventures to include routes that stop naturally at all spots you want to hit can help you to save quite a bit in fuel. What you’re saving on gas can go directly into your down payment account.
Making Your Dreams Come True
Home ownership is a dream for many, and one that is achievable with just a bit of smart financial thinking. If you’re looking to save for your first home, contact us at Titan Lafayette Real Estate to have your questions about home ownership answered today.