If you are in the market for a new home one way you can reduce your monthly mortgage payments is to have a substantial downpayment at the time of purchase. Some lenders may even require a certain percentage as a downpayment. Unfortunately, saving money is not the easiest thing for most of us to do! But here are some tips to help you save up money quickly!
*Ask…. I know it sounds simple but you wouldn’t believe the discounts I have gotten from my cell phone carrier, cable and internet provider, insurance, doctor bills, and paper delivery all by making a phone call. While in some cases you may have to give up some of your higher quality services such as lowering your internet speed a bit most of the time they will just offer you a promotion they have going on or figure out a way to save you a bit of money each month. Lets say you are able to save just $20 a month from each of these providers. Over the course of 6 months you will have saved $600, a great start to a downpayment!
*Cut coupons and shop sales for your groceries. Coupons can be really helpful but if you aren’t the couponing type then at least consider buying store brand items or discounted products. Most of the time the product is the same and you can save nearly 40% by eliminating name brand. If you usually spend $100 a week at the grocery ($400 per month) but now you start browsing the ads for sales, buying off brand, and looking for discounted products you can bring your grocery bill to $60 a week ($240 per month) a savings of a whopping $160 a month which means $960 over the course of 6 months!
*Avoiding the little expenditures is another key in saving up that much needed extra money. We all know you have to pay the basic bills and there’s not a whole lot you can do about that but the “extras” need to stop or slow down while you are saving. For example if you skipped getting your morning Starbucks for 6 months you could save $720. That’s a lot of money for a quick morning fix. Quitting smoking is not only healthy but another great way to save that extra money.
*Last but not least, in an effort to save money it seems obvious that making more money is another great way. You can do this many different ways. One of the easiest and quickest ways is to sell some of your old items you are no longer using. The popularity of Facebook rummage sites is growing and is a very effective way to sell unwanted goods. Craigslist, ebay, and Amazon are also great tools to use to make some extra money. Once you have cleared out your closets and attic you may want to explore the idea of offering your services. Instead of going out to dinner this Saturday night and spending money why not offer up some babysitting services. Some other ideas to make a few extra bucks are: dog sitting, mowing yards, organizing, donating plasma, cleaning houses, doing taxes, running errands, and the list goes on. Depending on how often you do these you could easily make an extra $300 per month or $1,500 over 6 months.
By doing these simple suggestions and watching your money more closely you should be able to save $3,780 without making too many lifestyle changes. A great down payment for some houses! If you are thinking of buying soon contact us for even more tips on preparing for home ownership.