Saving for a down payment
Saving for a down payment can seem like a big task but here are some great tips on how to start to save for a down payment.
A budget is a necessary step to start saving money and will help take control of your finances. Start by writing down your savings goal, dates to when you want to achieve them by, ways to reduce your monthly expenses and anything you can sell to make some extra money. Track everything on a spreadsheet!
Here are some ways to reduce your monthly expenses:
- Mortgage or rent
- Groceries/Dining out
- Television and Internet
- Car payments
- Maintenance and/or repairs
- Credit cards and/or student loans
Having multiple vehicles can be a large expense as you have double the payments, gas, insurance, repairs and maintenance. If you are able to share a vehicle in your household, it can be a big way to save money. Try carpooling with coworkers, biking to work or using public transportation!
Debt can be a savings killer so paying off your debt quickly can help you start to save for a down payment. Having too much debt can affect your credit score or even prevent you from getting a mortgage.
We live in a world where we can access information anytime and anywhere. Use these programs and apps to your advantage. Whether you are doing automatic transfers from your chequing account to your savings account or just keeping track of your monthly spending, there are great resources at our fingertips!
Starting a side hustle can be a quick and easy way to start saving for a down payment. Find a part-time job or start a little business like dog walking to help bring in extra money. There are so many opportunities so start your research and find something you would love to do.
The extra money from birthdays, tax returns, work bonuses, commission, etc. can be an accelerator to saving more money for your down payment.
All of these small changes can really help you to save for a down payment and find you your dream home!