13 Simple Ways to Save More Money

For many buyers, one of the most difficult things about buying a new home is saving enough money for a down payment. Traditionally, buyers put down 20% on this big investment, but now there are many financing options available that only require 10%, 5% or in some cases a 0% down payment. To prepare, really think about how much home you can comfortably afford. Discuss financial matters with your mortgage officer and set a goal for how much money you'd like to put down on your new home.

It's wise, financially speaking, to put as much money down as possible on your new home, but we all understand how difficult it can be to put money aside to prepare for that down payment or pay extra on your existing mortgage (great idea to build equity!).

Our focus in this week's blog is sharing some realistic, effective savings tips for our friends and clients saving for a down payment. Building up savings is always a good idea, but it's especially crucial when your goal is to buy a home. However, we know it can be difficult to set aside that extra money in your family's budget. With some help from these tips, it can be done!

Read on for our favorite ways to cut down on spending, and before you know it, you'll be ready for that new home!

• When shopping, compare prices and ask your favorite stores to price match when you find a good deal elsewhere.
• Make a list when you go shopping and stick to it.
• Put loose change in a jar, and at the end of the month put all the money in your savings account -- it will add up quickly.
• If you get a tax return this spring, put at least half of it in savings. If possible, just stow away 100% in the bank!
• Aim for short-term savings, like $20 a week for three months and place all that money in savings.
• Have a set amount of money automatically put in your savings account each time you get a paycheck. 
• Visit places like Starbucks sparingly, as most specialty drinks are about $5, and bring your lunch to work (going out can be $10-$15 each day).
• When shopping for clothes or shoes, never pay full price. Wait for them to go on sale and put that extra money in savings.
• Put away your credit cards for awhile. Try to cut back to only the essentials and stash the extra money in savings toward your down payment.
• Practice the 3-day rule: If you find something you want, put off buying it for 3 days, and more often than not, the urge to buy will pass and you can keep that extra money.
• Have a yard sale after spring cleaning this year and put all profits right in savings.
• Cancel any unused memberships -- Gym? Country club? Fruit of the month? If you don't use it, get rid of it.
• Call your cable, trash, cell phone, and insurance companies and tell them you've found better rates elsewhere. Chances, are they will reduce your costs by 10-15% because they want to keep your business.

What else are you doing to save money for a down payment this year? We know we have many friends and clients who are very financially savvy, so we'd love to hear your advice! 

Have a great rest of the week, and enjoy your Labor Day weekend!