Saving money can be tough when you’re struggling to balance monthly expenses. And if you’re hoping to buy your own house someday, you know the sooner you start saving, the better. While it might seem impossible to save while you’re facing ebt payments, grocery bills, and essential purchases, there are certain steps you can take to help you save more money for your dream house.
Looking to learn how to save to buy a house? Here are our top tips that you can follow to begin saving right now.
Start with Paying Off Any Debts
Debt can be a major setback when considering how to save money for a house. The first thing that you need to do when saving to buy a house is to gain control over all your debts. It’s hard to save money when you have significant debt payments to take care of each month.
If you’re worried about debt getting in the way of your house saving goals, the best course of action is to get professional help managing your debt. With our debt settlement program, we’ll assign expert debt consultants to negotiate on your behalf to greatly reduce the total amount you owe. Working with experts like the pros at CreditAssociates can help you free yourself of payments in as little as 24 to 36 months.
The best way to save for a house is to start with a firm set of financial goals. What kind of house are you looking to buy? When do you wish to purchase the house? What is the amount you’re willing to spend, and how much will you need to save each month to reach that number? These are some questions that will help you understand your long term goals. As a result, you’ll be able to budget your savings accordingly.
Start by clearly defining what kind of home you’re aiming for. Then, you can make an informed decision regarding what you can comfortably afford. Finally, calculate your total estimated home costs. This should include at least your mortgage, real estate closing costs, property taxes, and home insurance. Once you know the dollar amount you’re targeting, you can start saving money for a house accordingly.
Deposit Your Savings First
It can be helpful to have a saving strategy in place to keep your budget on track. Start with depositing money in your savings account on the first day you get your paycheck. If you are able to make this a habitual step you take every month, you will be more likely to consistently save, and less likely to spend the money you earn before you’re able to set it aside.
Many people decide to only save the money they have left over at the end of the month, which will of course vary. This variance is precisely why the practice is not advisable. Having a consistent amount to set aside every month makes it easier to track your saving and your spending, and to ensure that your timeline is continuing as you envisioned.
Keep a Close Eye on Expenditures
When you get your salary, it can be tempting to reward yourself for your hard work by allowing yourself some spending money. While the expense may feel luxurious and rewarding, the money you spend on yourself today is less money you’ll be able to dedicate to your larger goal. It’s important to remember that while the gratification may be a long time coming, buying a house is a great reward and celebration of your accomplishments. When you receive your salary, applaud yourself for everything you’ve accomplished to date, and then reward yourself by investing in your future happiness.
This same idea can be applied to daily unnecessary spending. Take some time to evaluate how much you spend on entertainment, going out to eat, groceries, your credit card debt, etc. Make a list of all expenses, and consider what is essential and what amount would have been better off being put towards your house-fund.
Be Careful When Shopping
How can you save up for a house while balancing the routine spending that is essential? If you are someone who defaults to using a debit or credit card to pay for groceries, you may want to heed this tip: Bring only cash on your shopping trips, and set the amount you bring to what you want to spend.
Shopping in itself is not something to feel guilty about while saving money. You do still need groceries, toiletries, and new clothes from time to time. The best way to cut down your spending when shopping, whether you are going to buy groceries or a winter coat to keep you warm, is to not carry too much cash in hand.
This involves planning ahead of time and budgeting. Through meal planning you can gain a clear idea of what groceries you’ll need and how much they should total. You can also research your personal needs, whether it’s a coat or essential items from a drugstore, and gain a clear idea of how much they cost and what you can afford to spend. Then you simply bring the amount of cash that meets what you’ve planned for, and you’ll be unable to overspend even if you wanted to.
Make the Most of Sales and Vouchers
One of the best ways to save money for a house while keeping up with your essential spending is to find opportunities for buying products on sale, or getting access to free shopping or discounted vouchers. The discounts may seem small at first, but if you’re able to make this a habit, it will help you save a good deal of money over time.
For example, if you know you need to make a major purchase such as replacing electronics that you use daily, or buying new shoes for growing kids, make use of the holiday sales and in-store promotions. If you’re looking to shop at a store that doesn’t have regular seasonal sales, try following them on social media. You’ll be able to keep track of impromptu deals and giveaways that happen throughout the year.
Make Bulk Buying a Habit
A lot of people are unaware of the benefits of purchasing daily use products in bulk. You usually get great deals at super stores for purchasing products in bulk, and there are even specialty stores that sell bulk items at reduced prices. This could be your answer for saving money to buy a house while also keeping in mind your everyday needs.
Another benefit of bulk buying is that it saves you costs from a commuting perspective. If you are able to buy enough of an item in bulk so that it will last you a month rather than a week, you’ll be able to reduce how often you need to shop. With your trips to the supermarket less frequent, you’ll end up driving less and will consequently spend less money on gas.
Pack a Lunch
It’s a common habit of individuals who work a regular 9 to 5 to buy their lunch from whatever restaurant is nearest to their office. They might even drive a little further to purchase their favorite meal while they have break time.
However, as convenient and delicious as it may be to treat yourself to lunch on your break from work, eating out can put a sizable dent in your daily spending budget. Just as you’re keeping an eye on expenses and planning ahead to shop smart, work lunches are an area where strategy and foresight can save you money. By spending some time at the start of the week meal planning, you can easily set up your daily lunches to be just as fulfilling—but far more cost efficient—as your restaurant-doing routine.
Spend Your Holidays at Home
If you’re someone who loves traveling and regularly dedicates dollars to vacations and weekend getaways, it can be hard to save money for a house. But with your ultimate goal in mind, vacations and travel may seem less essential. If you’re in need of time off and a relaxing break, why not opt for a staycation?
By choosing not to travel while you save for a house, you stand to save thousands of dollars. It is not just the travel ticket amount that you are saving. You are also saving on the food, accomodations, car rentals, and excursions that you would have been purchasing during your travels.
Get Help Saving With CreditAssociates
To save money for your house and other future goals, you’ll need to keep a close watch on your finances and track all your income and expenses throughout the year. This can be tiring and overwhelming, but it’s worth it.
At CreditAssociates, we offer debt settlement solutions that can help you get better control over your finances and save money for your house. If debt is becoming a factor keeping you from saving towards your goal, talk to one of our debt consultants about settlement options to reduce what you owe. Contact us today to learn more about our services.