The task of saving upwards of $40,000 for a full 20% down payment on a $200,000 home is absolutely overwhelming. Since the days of sub-prime mortgages are gone, we will most likely be going the FHA loan route, which only requires 3.5% down. Savings-wise, we shot for $10K as a goal to have a little wiggle room. We were able to do it in about 18 months, (although we're still saving, of course).
 |
| Wikimedia Commons/2bgr8 |
*Set up direct deposit, on payday, into your savings account. You won't miss the money if you don't see it!
*Take unexpected money and put it right into your savings account. For me, that meant tax refunds and the deposit from my old apartment went into savings. For Max, it meant selling extra or old items on eBay and Craigslist, including an unused telescope, DVDs and some old video game equipment.
*Every time you stop a service or receive a refund, add that money to your automatic deposit. I quit the gym and saved $25 per month, which I transferred into savings instead. I bought (and returned a month later) a $200 bridesmaid dress, so since I already "spent" the money, I wasn't missing it. The refund from J. Crew went straight into the house fund.
This is just what worked for us. With these small changes, your savings account can add up fast! We never felt deprived and definitely did not stop little indulgences like trips to Starbucks or a happy hour here and there. If you cut out all fun spending just to save for a house, you'll end up resenting the process instead of enjoying it!
For more tips on saving for your down payment, I recommend this post over at Money Under 30.
No comments:
Post a Comment