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Ryan A. Singh's Blog

By Ryan Singh | Agent in La Jolla, CA
  • 9 Ways To Save For A Down Payment

    Posted Under: Home Buying in La Jolla, Financing in La Jolla  |  May 12, 2012 12:33 AM  |  126 views  |  No comments
    Saving for a down payment can be a daunting task for many, but with these 9 strategies, you'll be able to put your money down in no time!

    1. Create a Budget. See where your money goes and what areas you can cut back and divert money into savings.

    2. Organize. Sell things you no longer need or won't be a good fit for your new home. A clutter-free organized home is a time saving home and time is money.

    3. Create and Follow a Routine. Have money deducted from your income, before you have a chance to spend it, and deposited in a savings account with the highest possible interest rate. Research around for Federal Deposit Insurance Corporation (FDIC) insured savings, certificates of deposit (CDs), money market funds, and other savings or investment vehicles. 

    4. Hoard Windfalls. Save any and all extra income including: tax refunds, holiday cash gifts, small lottery winnings andn other forms of unexpected money.
     
    5. Withhold Less. If you do get a tax refund, it may be time to adjust the money withheld from your paycheck. A tax refund is a free loan to the government. It costs you lost interest it could have earned in a savings account. Adjust your W-4 accurately to reflect your true tax liability. Use the Internal Revenue Service's withholding calculator to get it right. 

    6. Cut Back. Resist temptation and reduce spending on eating out, buying clothing, gifts and  gasoline. Instead, try buying generic brands, brewing your own coffee, or getting a better cell phone and cable TV plan.

    7. Dump Credit. Don't spend money you don't have and save credit for emergencies only. Pay off debt. Reducing credit debt gives you money to save and it can boost your credit score.

    8. Liquidate Assets. Try selling things you no longer need and/or use. Items tucked away in your garage or attic may be worth more than you'd expect and saving for a home, may be just the reason to sell them.

    9. Get a Second Job. Even working just a few extra hours a day can earn you a few hundred dollars a month. Think about working overtime during holidays or finding an additional source of income solely for the purpose of saving for your down payment.
 
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