If you are looking to purchase a home then saving should be
one of your top priorities. Easy ways to save is to change your variable
income. This can be as simple as stop smoking (which can add up to over $3,00 a
year), avoiding your coffee shop on your way to work (just coffee can add up to
over $1,000 a year depending on your brand), and eating out less (twice a week
can add up to over $1,500 a year).
Another easy way to save money is to slash your bill
payments. Call your credit card company and ask for a lower rate, look over
your cell phone bill and see if you can cut down your plan. Also if you are not
using your house phone, if not then why pay it? Get rid of cable by switching
to Netflix, HuluPlus, or watching free TV from your laptop or tablet. Call your
insurance company to see if you qualify for any discounts or switch companies.
You can also call any of these companies and ask if you get a discount for
automatic payments, going paperless, job affiliation, or AAA discounts. I get a
20% discount on my cell phone for belonging to AAA, an $11 a month discount on
my cable for enrolling in automatic payments, and save $4.50 a month on my
credit card bill by going paperless. All of these little tricks will add up to
With income tax refunds around the corner, I see an increase
in buyers who are using their refund as their down payment for a home. The tax
refund is a easy way to save money because you are not thinking about putting
money aside or changing your spending habits. You could also borrow from your
401k. First time homebuyers can borrow up to $10,000 for their IRA without
paying an early withdrawal fee.
And finally, there is the old fashion way, putting aside
money in your savings account every week. I was taught to save 10% of my
paycheck. If you think this might be hard for you to remember, you can ask your
payroll department to automatically put aside a certain amount of your paycheck
into your savings account.
Saving is a great way to get you to your down payment, but make sure it doesnâ€™t
stop once you have the keys in your hands. It is a life lesson that will help
in the long run, whether you need it for home repairs, medical bills, a loss of
a job, or retirement, it is never too late to start saving.
I am always available to talk about what you can do to get on the right track to
purchase a home. Feel free to call me anytime at 860-368-8383.