Tips for Saving a Down Payment for Your First Home

saving money

Buying a house requires a lot of planning. You need to have a certain credit score, a specific length of time spent at your current job, a certain income, and according to the loan you are going to apply for, you may need a down payment. Saving up a large sum of money can be difficult, but with some changes to your spending and budget, you can increase the amount of money you can save each month.

ANALYZE YOUR SPENDING AND BUDGET

If you don’t know where your money is being spent, it is going to be difficult to save for your down payment. Pull out your bank statements from the last few months and categorize all your spending. Pay close attention to the money that is being spent on extra items like entertainment, eating out, and anything could be cut or pared down to save that money. Some things simply cannot be downsized, like your monthly rental payments.

CUT OUT BAD HABITS AND EXTRA EXPENSES

Whether it is smoking or a daily stop at Starbucks, cutting out any habits that costs money is going to help you save money faster than you think. Do you order out your lunch every day at work? Start packing one instead. Do you subscribe to every streaming service? Cancel all but your favorite. Cancel magazine subscriptions or any monthly subscription that you don’t need. If you don’t already, start shopping the sales at the grocery stores, use digital and physical coupons, and plan ahead in order to save money on what is typically a big monthly expense. Remember, you are making big changes to meet a big goal. It is going to take work and sacrifice, but it will be worth it in the end.

PAY OFF DEBTS

If you have credit card or other outstanding debts, work on getting those paid down or completely paid off. Not only will this help you cut out some of your monthly bills, but it will also make your debt-to-income ratio much more attractive. That’s a big deal when you go to apply for a loan.

SWITCH PROVIDERS

Call your current car insurance, internet, and cell phone service providers and see if they can offer you any current customer discounts. If not, call around and find new providers that can give you better prices. Any place that you can save money will help you meet your goals.

CONSIDER DOWNSIZING

If you have a lot of things in your current home or apartment that you don’t really need or even want, consider having a yard sale or selling online. This can make you some extra money that can go straight to your savings.

MARKET YOUR SKILLS

Do you have a special skill or craft? Maybe you can knit, paint, sew, or cook. Market your skills and make some extra money on the side to help boost your savings.

Do you have any other tips for saving for a down payment? Stop by our Zippy Shell Facebook page and share with our online community.

If you have a move coming up, or you need mobile storage, give Zippy Shell a call at 888-947-7974 or contact us online. We would be happy to give you more information on all our moving and storage services and can give you a no-obligation estimate. We look forward to hearing from you!