Five Ways to Save for Buying a Home

Buying a home is a dream that many have, but the idea of ever saving enough money for a down payment and closing costs can be overwhelming. Many people with aspirations of owning a home also have large amounts of student debt and a desire to live a decent life. I’ve been there, and now I own a home. I am going to share some things that I have done to cut spending and save money. Here is my list of five ways to save for buying a home.

Take a Travel Break for One Year

I LOVE to travel. I mean, I really love to travel. I have been to some really incredible places. However, in 2017, I committed to zero travel in order to save for the down payment on the house that I bought in December of the same year. I even skipped my sister’s bridal shower in Arizona to reach my goal. (In my defense, I hosted a bridal shower for her in Houston and attended her bachelorette party in Tulum in January of 2018!) I didn’t just eliminate overseas travel, but I also cut out going to places like Austin and Dallas. I swear on those local trips, I still spend more money than I should. Depriving myself of getaways for a whole year was difficult, but the reward of owning a home was definitely worth it.

Cook Meals and Take a Lunch

Cooking your own food and taking lunch to work not only save you money, but they usually help your waistline too. We’re all guilty of going out to lunch too often or picking up Starbucks. With my busy schedule, the last thing I want to do is prepare dinner when I get home. However, my monthly spending is reduced by 10% when I shop at the grocery store, cook my own meals, and pack a lunch. That’s 10% that can be saved for buying a home. Get a crockpot and that baby will be your best friend. Meal prep on Sunday so your breakfast and lunch are easy items that you can simply grab from the fridge. I know that eating the same old thing can get boring and sometimes you need to get out of the house. Depending on your budget and goals, allow yourself one night each week or month to go out to dinner.

Cut Back on Going Out

Do you have any idea how much you spend in a weekend at dinner, the bar, the movies, and at brunch? Probably way more than you thought. Sit down and do the math. Cut back in this area. Instead of trying to fill the entire weekend with activities, just go out one night. On the other nights, stay in and binge-watch a series or rent a movie from Redbox. When you do go out, think about what you’re spending money on. Do you really need that $12 craft cocktail or would a beer satisfy you just as much? A Deep Eddy Ruby Red with club soda will taste pretty good too!

Make Your Own Laundry Detergent

I recently stumbled upon this gem of a penny-pinching idea! I’m not the first person to think that Tide Pods are insanely expensive, although they are darn convenient! Even liquid and powder detergent bought at the store are pretty pricey. The ingredients needed to make your own detergent come out to about twenty dollars at Wal-Mart or thirty dollars on Amazon, and you will get approximately 400 loads of laundry out of it! Spend the same on Tide Pods and you’ll be lucky to get 48 washes. I’m sure there are plenty of other DIY hacks you can find that will also save you money!

Open an Interest-Bearing Savings Account

Interest rates for checking and savings accounts have been increasing since the Fed raised the prime rate. Basically, when rates for borrowing are high, so are the rates for earning. Since about 2009, interest rates for checking and savings have been pretty dismal, but that isn’t the case anymore. Conventional brick and mortar banks have raised their rates, but online banks are offering some impressive interest earnings. Ally Bank is offering 2.2% with their online savings account. Why not let the money you’re already saving with the above tricks make you more money?! If you have the ability to put your money into a CD without the worry of needing it, you can earn even more!

If owning a home is a dream of yours, it can come true. Saving is hard and it isn’t fun, but with a few tweaks to your lifestyle, you can save and still enjoy life. When you’re ready to start the process of buying a home, reach out to me! Got questions? Comment below!