Buying a new home can be a really fun and exciting process. It's not like a person goes out every single day and buys a new home. Before you get into looking at homes, you will probably want to figure out what your budget is.
Once you figure out what your budget is, you will need to figure out how much to save for your down payment. Whatever amount you want to save, you will probably have to save something!
Here are different ways to save for your down payment on your next home.
Set aside a designated amount each month.
What most people do is set aside a designated amount each month. Or maybe you contribute every last piece after your normal expenses towards your home down payment fund.
This can be a great way to save for your down payment, but it may take you a little bit longer since you aren't changing anything about your budget or your income most likely. However, it works for many people!
Work a part-time job.
If you are looking to save for a down payment more quickly, then you might want to look into additional ways to make money or additional ways to cut your budget (more on that below).
If you find another way to make money, then you could probably put all of that extra money towards your down payment fund, thereby saving much more quickly. This is all, of course, dependent on how much money you make each month at your side job.
Possible side jobs are all over. You could possibly:
- Work at a retail store.
- Work at a restaurant – such as a waitress, host, cook, dishwasher, bartender, etc.
- Freelance on the side – website designer, customer support, blogging, writing, etc.
- Walk dogs.
- Babysit and nanny.
- And the list goes on and on and on!
Slash your budget.
If you want to save even more, then you make want to slash your budget so that you can save for it more quickly. There are many things that you could cut out of your life that probably would not make a drastic change in your life.
You could cut out your gym membership (and work out in different frugal ways), lower your food spending, find frugal ways to entertain yourself (movie nights, anyone?!), and so on.
Additional mortgage advice can be found at First Mortgage.
How did you save for your down payment?
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