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Ideas for first time homebuyers to save for a down payment

By
Real Estate Agent with RE/MAX Results

When thinking about buying your first home down payment  is one of the first things that comes to mind.  Reducing the amount of money you spend every day is one way to get that done.

  For 1 month take a small notebook (one that easily fits in your pocket or purse)  with you everywhere you go and write down how much money you spend and what you spend it on. (you can purchase one atWalmart for .29) It is amazing how much we spend without thinking about it.  Look at how much you are spending on lunch average $7 a day or more.  If you make that lunch at home and take it with you it will only cost about $2 a day.  You have just saved $25 in a week and $100 that month. And that is just one person.

Then there is the coffee you buy out.  If you stop at Starbucks twice a day for a week, and spend $5 a pop on coffee that is $50 a week.  If you make that coffee at home or at the office you spend about .07 a cup.  That is a savings of $45.00 a week. (Think Thermos) You have just saved $180 that month. For a married couple double that.

 And the bottled water you buy at the local convenience store.  You are paying at least $1.29. If you go to Costco or Sams club and buy it by the case.  It will cost you less than $4.00 a case for 32 bottles.  You are paying $.12 a piece for the water. So the 32 bottles of water at the convenience store cost you $41.28 where the ones from Costco or Sams cost you $3.84  that is a savings of $37.44

These little cost saving changes really add up.  There are quite a few more things you can do to change your spending habits. Clipping coupons, going over the food ads and planning your meals with what is on sale (and eating at home) is a start.  The note book will really open your eyes as to where your money is going.

Also I am seeing lots of good websites for consumers lately.  Here are some really good ones. 

To help you reduce your  bills..

Billshrink.com it will help you find the lowest prices on items and services you already use.

Smartypig.com will help you build your savings with 2.15% interest and is FDIC unsured

mint.com  helps you manage your money. 

Begin thinking about what you are spending and you will be amazed at where your money goes.  The old adage of "Pay your self first " is still good.

 

Posted by

Peggy Magnanelli

RE/MAX Results

Peggymagnanelli@mris.com

240-674-8585

www.servinggreaterfrederickcounty.com

Specializing in Residential Real Estate in Frederick, Montgomery, and Washington Counties in Maryland

first time homebuyers, relocations, and Foreclosures

Pasadena Short Sale Agents Pasadena Short Sales
Munson Realty Southern California Real Estate - Pasadena, CA

Greata Post! :)

Jun 22, 2010 03:28 AM
Edward & Celia Maddox
The Celtic Connection Realty - Queen Creek, AZ
EXPERIENCE & INTEGRITY - WE TAKE THE HIGH ROAD

Peggy, thanks for the post.  First time home buyers need all the suggestions they can get.  Thanks for sharing.

Jun 22, 2010 03:40 AM
Deborah Byron Leffler BzyBee Real Estate Lady!
Keller Williams Realty Boise - Nampa, ID

Great post....I often times will ask my first time homeowners to save the difference between what their rent payment is and what their house payment will be in a savings account...then it works 2 ways...they can decide if they can make that payment and they can save money for a down payment or new decor for the house!  

Jun 22, 2010 03:54 AM
Peggy Magnanelli
RE/MAX Results - Frederick, MD
Homebuyer/Seller Specialist

Debra,  great idea.  I had a couple who did what I told them and, VERY important,  they got the kids involved and they saved $13,000 in 10 months. In addition to the cost cutting measures I out lined, they cut back to basic cable, were very conservative with gift giving, ate hamburger instead of steak, made dinner at home instead of eating out 3-4 days a week. And they didnt' buy anything that they didn't really need.  They adopted a "Wait a Week policy" for any purchases(other than basics and food).  It was amazing how much they saved.  Not only that but the family time was enhanced also.  the kids helped with the meals and the older ones helped with the planning of the meals.  One thing that helped get the kids to buy in to the whole idea of a house was actually seeing a house an the fact that they would all get their own rooms.  I took them out and showed them houses in their price range with the kids.  And the  deal was they could paint their rooms any color they wanted.  I was so impressed by that family. They worked really hard to get that house.

Jun 22, 2010 04:38 AM