The idea of saving enough money to be able to afford a down payment on a house can be overwhelming. In today’s market you need to be creative and focus on finding many ways to save money for your goal. Here are some easy suggestions to help get your started:
- Goal-oriented savings account. Open a savings account specifically for your house down payment so you can track your progress and the account growth. You should not link a debit card to this account; this may help prevent you from spending the money on something else. You should research opening this new account at an online bank. Online banks often pay higher interest rates than traditional banks and they are FDIC insured.
- Monetary gifts. If you receive any monetary gifts from your wedding or from a parent or relative put the money away in the savings account specifically for your house down payment.Down Payment on a House.
- Automatic savings plan. Take advantage of this opportunity if your employer offers it. Ask for a percentage of your direct deposit from your paycheck to be sent to the savings account that is specifically for your house down payment. Having a set amount deposited into your savings account helps with your savings goal and ensures that your balance is growing. It may take some time to reach your goal, but it will be worth it in the end.
- Take inventory. Find the items in your house that are valuable but that you do not use or need and think about selling them. The proceeds from the sale can be added to your savings account to get you closer to your goal. If at the end of the day you are unable to part with your items, you can still get an appraisal for the items for your records.
- Budget adjustments. Sacrifices now will help you obtain your goal of owning a house in a shorter period of time. Review your budget to see if there are areas where you can reduce or eliminate the expense.
While it can be overwhelming at times, achieving your goal of home ownership will be very rewarding. Remain focused on your ultimate goal and you will achieve your dream.