Saving for a Home
If you have dreams of home ownership, finding ways to stash money away for costs like your down payment, inspection fees, and other closing costs is likely top of mind (and if not, it should be!). But how do you kick off that #moneysaver lifestyle?
Here are 10 tips for filling your piggy bank while you manifest your dream home:
Understand your spending - It’s hard to save money when you don’t have a sense of where that money is going. Track your spend for a full month by either saving receipts, using a free app like Mint, or reviewing your credit and debit transactions if you use a card for everything.
Create a budget - Once you know how you’re spending your money, you can create a budget. Break your expenses down into categories and include EVERYTHING - rent, utilities, insurance, food, car payments, student loans, your monthly pedicure, and your daily Starbucks habit - every little thing you can think of. While you might ultimately identify some of these spends as areas to cut, putting everything into an organized list will allow you to determine where you want to prioritize your money and what you can let go of to stay within your financial means.
Set up an automatic savings account - Did you know that most financial institutions will allow you to set up automatic transfers from a checking to a savings account? It takes the decision-making out of your saving plan by automatically transferring money from your “spend” bucket to your “future house” bucket. Another option is to talk to your HR department about splitting your direct deposit into two accounts. Never seeing a portion of your paycheck as spendable REALLY helps!
Reduce takeout/cook more - If you haven’t already considered it as a part of Tip #1, add up how much money you’re spending specifically on takeout. If you’re anything like my family, it’s a LOT, and as much as I don’t like cooking most of the time, I DO enjoy keeping more money in my pocket. Make cooking fun by taking a YouTube cooking class with a buddy, hosting a potluck with your friends, or listening to a fun podcast or music while you chef it up.
Review your insurance rates - Most people obtain car insurance when they buy a vehicle and then don’t give it a second thought, but shopping around for insurance every now and then can create some serious savings. Or if you insure multiple pieces of property, talk to your insurance agent to determine if your plans can be consolidated for multi-plan discounts.
Make coffee at home - OK, I know… of all of my suggestions, THIS might be the hardest. Trading even a portion of your coffeeshop jaunts for making your brew at home can save you serious dough. Consider your go-to iced grande caramel macchiato in a venti cup more of a treat than an everyday occurrence.
Reduce your subscriptions - How many streaming services do you subscribe to? If you’re like most people, it’s more than you actually watch. Identify which platforms you use the most and consider canceling the others. You can always switch your services up once you’ve completed bingeing your latest show obsession (Euphoria, anyone?).
Buy generic - Many of us purchase the same brands week after week out of habit, but in a lot of cases, the store brand can be just as delicious as the name brand. Try out different generic options to determine which you’re willing to make the switch for. The same goes for medications, but certainly speak to your doctor first on that one.
Try thrifting - Buying items used can save a TON of money, and it can be super fun! Gather your girlfriends for a trip to the local consignment shop, stop by the library’s book sale, or browse Facebook Marketplace for lightly used items offered locally or with a shipping fee.
Sell that stuff that doesn’t spark joy - Everything has its season and we all have things sitting around that we no longer use, or we just don’t get the same enjoyment out of. Allow someone else to love your stuff and make yourself some cash at the same time! FB Marketplace, Craigslist, or services like Poshmark offer ways to list your items for sale and stock your piggy bank full of fresh bills.
Tightening the reigns on your spending isn’t always fun, but when you’re moving into the home you created vision boards about, you’ll realize it was ALL worth it!
ABOUT THE AUTHOR:
Faith Irek, Sales Agent, REALTOR®, Breakwater Realty Group Co-Founder
Faith grew up on an equestrian farm outside of Portland, Maine and returned to the state after graduating from the University of New Hampshire with a Business degree. She brings over 17 years of high-level marketing and digital management experience to her real estate career and enjoys creating effective and creative promotional campaigns that support Maine homeowners in the sale of their property. Faith is equally as devoted to finding her buyer clients homes that they both adore and feel safe in, and is committed to a client-forward approach that leaves no stone unturned in pursuit of the best deal possible.
Faith resides in Falmouth with her family. She enjoys live music, kayaking, golf, and is learning to both refinish furniture and to not kill her houseplants (one of which is far easier than the other!). She will drop everything to pet a dog and will never pass up an opportunity to visit a county fair. She is the former Corporate Vice President of the Hugh O'Brian Youth Leadership Maine chapter and enjoys finding new opportunities to support her neighbors in need of a helping hand.
207.233.8177 // faith@breakwaterrealtygroup.com