How to save for a house
5. Contribute less to temporary retirement
If you’re having trouble saving enough money, you may want to temporarily contribute less to your retirement savings. It could help you save more money for your future home. However, hijacking your retirement savings may not be a good idea if you are quickly approaching retirement.
6. Get somewhere more affordable
Saving for a down payment can be a huge challenge for most borrowers. To make it easier for you, you might want to look for a more affordable home. For example, if you buy a house for $ 400,000, you will need to save $ 80,000 for a 20% down payment. Whereas a $ 200,000 home only requires $ 40,000 for a down payment.
7. Reduce and reduce additional expenses
When saving for a home, it’s a good idea to cut back on your spending. Downsizing can help you save hundreds of dollars on the costs of closing your home. So, avoid the daily trips to Starbucks, expensive gym memberships, and other unnecessary purchases.
8. Record your unexpected increases, bonuses and profits
It’s tempting to spend that unexpected bonus or tax return, but saving it will help you reach your real estate goals faster. Whenever you receive an unexpected windfall, deposit it into your savings account instead.
9. Get a sideline to earn extra money
And finally, if you can’t save enough at your current income level, you might want to jump into a side business. Freelancing, driving an Uber, or delivering meals with DoorDash are all side activities you can do in your spare time. It’s a sacrifice, but it can add hundreds of dollars a month to your savings goal.