Saving for the down payment for your first home can seam like an extremely daunting task. Self-discipline is one of the key factors in saving, and can be difficult but is not impossible!
Set a Fixed Rate to Save
Settling on a fixed number or percent of your income to save is one of the best first steps you can take! With the majority of direct deposit plans you can simply adjust this to directly deposit into your savings account and not even notice. Take a look at your monthly living expenses to determine at what rate you can save, and if you have any opportunity to trim any of your living expenses to increase your rate of saving. Utilizing any raises, bonuses or tax return income is a great way to start saving large sums of money to quickly knockout that down payment. We recommend budgeting apps like Mint or You Need a Budget.
Reduce Your Debt
Pay off those credit cards, and put a dent in your student loans. Not only will his help boost your credit score and thus getting you a lower interest rate, but will help delegate your income into savings rather than high monthly bills.
Avoid Other Large Purchases
If possible, avoid any other large. purchases while you are trying to come up with that down payment. Hold off on buying that new car, or put your vacation on hold until you are able to hit your target savings amount. Utilize the income you would have used towards your new home!
Manage a Side Hustle
Any additional income you can generate while saving is great! A side hustle may be a great way to earn some additional cash! Try making your side job something you enjoy doing so it does not feel like a burden. Looking to clean out your closet? Use an app like Poshmark to earn some money while getting rid of items taking up space! Great at creating things? Consider opening up a shop on Esty to generate some extra cash. Ride sharing, grocery delivery, or tutoring are other great side gigs to help you save!