When it comes to saving for a home, it sometimes seems impossible to see where the money will come from. Most people think that a reasonable amount to save for a home is 20%, which can be a significant amount when you look at the big picture. However, when it comes to saving money, there are a lot of expenses you probably have every day you can drop in exchange for some long-term savings. Here are a few luxury items you can cut that you can can use toward a down payment for a house.
Daily Coffee
A good portion of the people in this country can’t start their day without getting a little pick-me-up from their early morning coffee. When you add up a 5 dollar a day or more expense that can add up quite a bit. You can save a lot of money either not drinking coffee or doing it yourself from home. If you take that money and put it in a savings account, even one that doesn’t make any money at all, you are saving a decent amount each week towards your down payment.
Car
If you are commuting every day to work, there are ways to save money. If you do a little research, you can look into public transportation and see if you can save money by taking the bus, train, or other public transportation methods. If you know someone from work that lives near you and has a similar work schedule, carpooling can be a great option. Also, your current car might be guzzling too much gas. If the time is right to get a new car, though, consider a more economical vehicle, especially one that saves you on gas. Hybrid cars and even full electric cars are getting a lot less expensive and can save you a lot of money in the long term.
Lunch
You have to have food. But you don’t always have to go out to eat lunch every day. When you figure in the cost of going out to lunch, it typically costs between $5-$10. If you eat out every day, that is between $25-$50. You can still go out to lunch, but just by cutting out $10 a week that $520 a year, that could be going towards a down payment. It only takes a little time and preparation to get the necessary food for lunch.
Recurring charges
You may pay monthly fees that go automatically on your credit card every month for things you don’t use regularly. Items such as gym memberships, or music streaming services may add to your monthly charges, even if they don’t add to your daily, or monthly life. Consider dropping services that are just adding up for someone else and not you.
Cable
Cable bills often start with introductory offers, and then raise over time. They will add a charge here and another cost there and all of a sudden you are paying three times what you started out at. When you are barely watching a few channels in your family, it might pay to give the cable company a call and see if they can lower you bill, or change services. It might even be worth not having it at all and switching to a streaming service for a much lower cost.
When it comes to your ability to get into a home, it is about priorities. If getting a home is your number one priority, then the sacrifices you make in other areas will be worth it.
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