Ways to save for a Downpayment for any BIG Purchase!
There are MANY great ways you can save up for your dream home. Fortunately, you can use these same tips and techniques to save up for other purchasable matter like a car, vacation, paying off your debts or simply saving for your retirement! It's been proven that once you achieve your financial goal, you build a habit of maintaining these strategies to achieve other aspirations as well! It all depends on how motivated you are to accomplish these goals. Here are the tips:
1. YOU MUST PRIORITIZE
Saving for something important, like a home, is all about priorities. If saving for a home is one of your top priorities, then you should try to identify other areas where you can cut back so that you can put more money into your savings. The BEST way to identify areas to cut back on is to formulate a budget.
2. PAY OFF YOUR CREDIT CARD DEBTS
You cannot save money if you are paying alot of interest to someone else. The first priority before saving up should be paying off all your debts. Start with your smallest high interest debt. Then take the minimum payment from that debt and use it to help you pay off the next small debt that has the highest interest rate. Once that's paid off, the 2 minimum payments that you used to pay for the smaller debts can help you pay off your next debt faster. You will notice a snowball effect as the minimum payments you are freeing up help in making larger and larger payments against one debt at a time. This is one of the FASTEST ways to pay off debt.
3. GET RID OF ONE CAR
If you can get ride of one of your cars, then do it! This can save you thousands of dollars per year. You could consider walking, taking transit, car pooling or even cycling to your job. If you can make this work, you can potentially save, not only on monthly car payments, but gas, maintenance, and insurance. There paymetns add up to approximately $9000 for the average person, which is saying something. As a start, try parking your car for a couple of months first to see if it will work for you!
4. SAVE MORE FROM WORK
When you get a raise at work, take that extra money and save it in a seperate savings account. Try saving bonuses, extra sales commissions or tax refunds in your separate savings account.
Like what you read?? Stay tuned for more ways to save up on our next blog!
Have Questions regarding Real Estate? The Iris and Evelyn team are here to help! With their countless years of buying and selling Real Estate Properties, their experience and knowledge can help you make the right choice!
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