How To Save For A Down Payment

How To Save For A Down Payment


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Many of the clients I work with are first time home buyers. I meet with people every week who are in the process of saving for their first home.  I am often fielding questions on how much they should be able to put down and what that impact will be on the bottom line at closing. I know that many first time home buyers think the task of saving from three thousand to fifteen thousand for their down payment can seem impossible! I would like to share some tips on how to push your budget down so you can save those extra dollars every month faster and faster!


One fantastic way is to get a money management system. My husband and I is MINT.COM for our money management. I am a very visual learner so I love to see the graphs and pie charts on where out money goes every month. My husband as well loves the budget manager. We can go in and change our monthly budgets to accommodate the activities we have scheduled for the week and month. You have to know where you are before you can get where you want to go. So whether you are using a system like Mont or something like an excel spread sheet get it all out there!


Then, when you have a tracking system in place take a look at your largest spending areas. Where is your money going that are not bills, rent, student loans, or other areas that are constant monthly charges? For our household I noticed right away it was our food budget! Holy smokes were we spending a lot of money on food. Between eating out, lunches at the office and out normal groceries it was insane the amount of money we were spending. One wonderful suggestion we got was to focus in on our spending in that area. Plan a bit more on the grocery list before going to the store. Also have a snack before you go so you don't spend extra on snack foods because you are hungry as you shop.

 

One other tip I got from my mother is to meal plan!! Take a few minutes before your trip to the store and talk about what you want to eat for lunches and dinners for the week. Be purposeful in your trip to the store and cut out spending upwards of ten dollars a day on lunch! If you take the difference in what you have been spending for take out and lunches on a weekly basis and put that into your down payment fund your dollars can add p quickly! 


Also pay attention to your entertainment budget. if you took a few months and put away all the money you were spending at the movie theater, going out with friends, shopping and coffee treats you can have a tidy sum all saved up.  Many people do not realize how much they are spending here or there for a new shirt, a few drinks with some friends or meeting someone for coffee a few times a week or month. For a few months of being conscious about your spending you can have a nice chunk of money saved!


Jacquelyn Carlson Headshot
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Phone: 763-442-7197
Dated: November 20th 2015
Views: 212
About Jacquelyn: I am in my first year as a buyer specialist with the Steinbach Home Selling Team. I work exclusiv...

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