5 Simple Tips To Help You Save Cash For That Down Payment On Your First Home
have a confession - I have this fear that my credit score will never be good enough to become a homeowner. Like, I'm not kidding when I say I break into cold sweats every time I login to Credit Karma. It's become kind of a joke in my family...partly because I am the only one who is terrible with money (specifically with parking tickets...like, real, real real bad with parking tickets).
Buying a home is probably the single most important (and intimidating) transaction of your life. So, I'm cutting myself a bit of slack for feeling overwhelmed at the mere thought of purchasing my first home one day.
That's why I've enlisted the wise counsel of my cousin, who is a total badass/boss babe/broker and record breaking real estate agent to break things down when it comes to saving money for a down payment on a house.
MEET CHRISTINA KHOSROWABADI, ONE OF CALIFORNIA'S TOP REAL ESTATE BROKERS
5 SIMPLE TIPS TO HELP YOU SAVE FOR THAT DOWN PAYMENT ON YOUR FIRST HOME
Take It Straight Out of Your Pay
Set aside part of your monthly income each month that goes directly into your savings account and place the remainder in your checking account. This way you can learn to live off of the smaller amount longer and stretch it for the remainder of the month. It’s always best to save your money as soon you as you get paid versus trying to save after in which you will run out of money before you get a chance to actually save.
Sell Your Stuff
Many of us have loads of items that we hoard onto. How much stuff does one really need? Do you really need two laptops or three flat screens? There are many different types of websites that you can easily sell your used items on. A great way to build up your savings and de-clutter your life.
Revaluate Your Expenses
We all know there are ways to save money and be frugal, but we still want to enjoy life and splurge a little right? Take the time to review what your daily spending habits are. Some of us love our $3.95 Starbucks Latte and don’t want to give that up, totally fine. However maybe you can eat in one night instead of going out to dinner to balance out the difference. Once you take a close look at your daily expenses, you’ll be surprised on how many little ways you can trim down your costs and actually add to your savings.
Downsize Before You Upsize
Moving into a 1-bedroom apartment from a 2-bedroom apartment can definitely help lower your rent around 20%-30% in most areas. Living in the Bay Area can be very expensive and limiting. If you have the option of living with family, you can save a pretty penny and reach your goal of buying a home a lot faster. Another option to look into is renting an in-law unit. The monthly rents are usually lower and include utilities. In-law units are definitely becoming the new trend in the Bay Area.
Start a Side Hustle For Extra Income
Sometimes we need to think of ways to create additional income in order to save enough for the down payment. Consider how you can use your skills to provide a service like tutoring or website design etc. Or depending on your work schedule, maybe find a temporary part-time job to bring in additional income to build your savings.