How do you save enough money for the down payment? This is often the most daunting challenge that you will face as a new homeowner. You don't have a house to sell and you may need to do this on your own. Not to worry. The biggest challenge is to make the commitment to save the money.
Let's get started. First you need to look at your budget. Take a week and see where you are spending your money, I know, it's frustrating. Get over it. You do want the house, don't you? Get a small note book and start to keep track. At the end of the week you will be alarmed at how much money you waste. Be honest with yourself. This exercise may change your life.
Now that you have found all of the holes in your budget, you can start to collect your reward. When my wife and I stated to save money for our new home we completed this exercise. Since we were not married at the time, we decided to save equal amounts of money and we opened a separate house account to build up our savings. Each week we committed to putting money into the account. Before we knew it we had several thousand dollars in the account. We saved it a few dollars at a time. Each time she put $50 in I would match it. We even got out kids involved. We had them collect bottles and cans in the house and when we turned them in that money went into the house fund. I know it's corny but I own a home.
The point is that you need to make a commitment to save money to buy your home. There is no wrong way to make this commitment. If you start to recognize where you are spending money, you can find opportunities to save money. Even if you don't buy a home, the money you save can pay for a nice vacation.
Once you start to save money, look at vehicles to help you save more money. Use automatic payroll deductions. This way you'll never miss the money. There are many ways that businesses try to separate us from out money. They offer credit, low monthly payments etc. Stop and think before you buy. Will you really use the product? Why are you buying it? Will owning this new product or service get you to where you want to go?
Answer these questions honestly. The people who own homes have answered these questions.
By now many of the loan officers reading this are saying "What about zero down?" They don't need to save. Yes, they do need to save. Having financial balance and a safety net are critical to long term financial success. People who are able to save have better borrowing opportunities and limit their exposure to risks faced by others, who have to borrow for emergencies.
Just some thoughts for you to review, while you are thinking about preparing to buy a home. Planning and saving are signs of maturity. Having a savings safety net helps your state of mind and can ensure success.
Does anyone have any savings ideas to share?
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