5 Ways to Save Up to Buy Your First Home
Buying your first home might seem like an uphill battle at first. You could be just out of college with student loan debt, working for a less-than-favorable salary and/or starting a family. It’s the perfect storm for super tight budgets. But there are plenty of ways you can begin to save money to buy a home,even during this crunch period. Get creative, and with patience (and maybe a little assistance), you’ll be in your first home before you know it. Here are some tips for saving the money you need for your first home:
- Start saving ASAP – Even if you’re still in college and owning your own home seems like a way-off goal, it’s never too early to start saving. Stash away cash from birthday gifts, holiday presents, a part-time job – whatever your source of income, put something away in an account or investment that earns steady interest.
- Create a budget and stick to it – Budgeting is a life-long, necessary skill, so start learning how to do it now to avoid pain later. Budget for saving your first down payment by being strict with your money. For example, before you make impulse purchases, examine if you really need what you’re about to buy. If the answer is no, it’s probably best to put that money into savings. Cut back on eating out, which can be a major expense. Cut out small expenses that add up, like that online video streaming service or your daily $5 latte.
- Home registries – If you’re registering for wedding gifts, instead of fine china or crystal that will just end up collecting dust, why not ask for money toward your down payment? Plenty of websites are popping up to allow couples to register online so that their friends and families can contribute to their first home down payment. A few sites that provide these registries are Feather the Nest and Hatch My House.
- Downsize temporarily or rent out your extra space – If you’re living in an apartment with an extra room, you can save money by temporarily downsizing to a smaller, less expensive apartment, giving you less space, but more money in your budget. Or you could rent out your spare bedroom to a roommate. Either of these options is putting extra cash in your pocket.
- Consult a professional – When you want to figure out the best place to invest your savings, consult a professional financial advisor. A financial advisor can educate you on the wisest ways to invest your money so that it will work for you by earning interest. The quicker your savings add up and grow interest, the faster you will be sitting pretty as a brand new home owner.
We know that trying to save up money can get discouraging at times. Unexpected expenses come up, and sometimes it feels like you’re taking one step forward, two steps back. We encourage you not to give up! Keep your eye on the prize – even if that means putting a picture of your dream home on your refrigerator. Over time, your efforts will pay off, and you’ll be moving into your new home.
If you’d like information on the home buying process, contact the Chris Colgan Real Estate Team. We’re here to help in any way we can.
Chris Colgan is the CEO and Team Leader of the Chris Colgan Real Estate Team. Chris was born and raised in Gainesville, Virginia and has been in real estate for 10 years. He is a member of the Re/Max Hall of Fame and is in the top 25 for sales in the state of Virginia out of all Re/Max agents. He has been recognized as one of the United States’ and Canada’s Top 500 Marketing Experts by the National Association of Expert Advisors.