If one of your goals for 2018 is to buy a new home, one of your main areas of concern is likely financing. For that reason, I’d like to share a few tips on how to save a down payment for a home.
1. Set a target goal. Talk to a mortgage professional about how much you can afford. This way, you’ll know roughly what to aim for when saving for a down payment. Research shows that people who have a specific dollar amount in mind when saving money are more likely to reach their goal.
2. Assess your spending habits. Don’t just make a rough guess about your monthly expenses. Sit down with your bank statements and carefully examine how you are currently allocating your income. This will show you where your money is going and where you need to start cutting back.
3. Shrink your TV package. The average cable bill hit a record of $103 in 2017. This is nearly 40% higher than the average from 2010. To try to negotiate a lower rate, contact your provider and let them know you are considering a switch over to their competition. This could provide leverage to your negotiation.
4. Save your tax refund. Depending on your work and income, this can be a nice chunk of change. Commit to putting this money away before you even receive it.
5. Get a cash rewards credit card. Ditch your no-frills credit card for one with rewards. This is an easy way to earn extra if you pay your bills consistently.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.