Easy Ways to Save Money
One of the things that are very important when it comes to buying a house is the down payment because if you pay a higher down payment you have fewer payments to worry about in the future. The problem with the down payment is you have to save money in a recession with exceedingly high gas prices. My wife and I bought a brand new custom home last summer and in the two years we saved up money for the down payment I learned a few tips to save money.
1. Try to avoid stores- I’m not sure about you but my wife loves shopping. Whenever she walks into a store she walks out with something, she claims it’s a part of her charm. So to save money we decided to avoid going into stores for no reason.
2. Always have a list AND STICK TO IT- Obviously at some point you will have to enter a store. Whether or not you or your spouse is the shopaholic always bring a list with you. If you know exactly what you need in the store you are less likely to go wandering aimlessly around the store exclaiming “I think I need that!” and throwing it in the cart.
3. Cook Dinner- I’m all for eating out every now and then but you have to admit that $6.00 for a burger and fries per person is a little excessive. Invest in a cook book and some groceries and avoid eating at restaurants; fast-food counts. Eating at home and then eating the leftovers the next day for lunch will save you a lot of money.
4. Try not to give up the things you love-I think this is the most important one. I am a simple man, the one thing I love is milk and cookies right before bed. If you try giving up the things you love it’s going to make you feel like you’re saving which, of course, makes you save less. Trim off the stuff that you can get rid of unless you’re obsessed with Dolce and Gabana.
5. Automatic saving- You will save much more if the money is transferred directly from your checking account into your saving account. If you do it manually sometimes excuses can come up and you end up not saving the money you planned on. If the bank does the transfer, it comes to the point where you don't realize you're saving.
6. Don’t put off the saving and try to save all of the money you need in a month or two- The last thing you or your real estate agent wants is for you to do things that aren’t good for you to buy a house. Yes, it might seem easier or smarter to maybe not pay your cable or phone bill and save it for your house but it's a terrible idea. All you'll do is ruin your credit and then the saving won’t help you very much.
7. Patience- As I wrote in my last point, it’s not going to happen in a month or two. If you don’t have the money after a year, don’t get frustrated and blow it on something, keep going. We all know the saying “Slow and steady wins the race”; this quote is the driving force of real estate. Wait until the money comes to you and if you have a desperate time and NEED to spend it, spend what you have to and then continue saving the next month.
8. Carpool and avoid extra trips- Gas is way too high to drive to three different stores to find the perfect vanilla candle. Get the candle where you get the rest of your stuff, being picky isn’t going to work. Carpool whenever you can, even if you don’t work at the same place. For years my wife and I worked at different places, but I would drop her off at work on the way to my job and then she would get a ride with a friend on the way home.
9. Don’t be afraid to tell your friends about your plan- A good friend will help you resist temptation. Instead of going out with friends to the movies, invite them over for a rented movie and have them bring snacks. Instead of going out to dinner on a Friday night with your friends, invite them over and cook dinner. Every now and then a friend will surprise you and even offer to pay for your portion if you just explain why you can’t spend the money. Everyone has to be on a budget at some point, don’t be ashamed of it.
10. Work for the extra things you want to buy- You’d be surprised by how many things you wouldn’t buy if you had to literally work more to get it. If something seems really important to you, don’t be afraid to take on an extra hour or two at work so you can get it without touching your savings or making yourself uncomfortable with your accounts at the end of the month.
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