Six tips for saving for a new home
Saving for a new home requires persistence, and every dollar counts.
If you are looking to buy a new home this year, we have timely tips from our Welcome Home Loan specialists. The first six, here, will help you save for the big purchase:
- Automatically deposit money from every paycheck into a separate savings account. Remember: Consistent deposits are key!
- That tax return? Put it into your house savings account (see #1) before you get other ideas.
- Practice living on a budget. Pay down whatever debts you have while putting money aside for a down payment. Every dollar counts, so save spare change, buy gently worn clothes for play or work, use coupons for essential items, limit online purchases, and make coffee at home instead of buying at the coffee shop.
- Track your savings on paper in a visible place, like your refrigerator door, where it will constantly remind you of your goal.
- Save extra money by borrowing books and movies from the library instead of buying or renting them. Visit parks and museums that don’t charge a fee. Calculate how much you've saved, and add it to your house fund.
- Track your expenses. In a small notebook or your phone, write down every penny you spend for 30 days, including for bills, coffee, gas, and eating out. At the end of the month, compare your list to your bank statement to make sure all your spending is accounted for. Do you see any “wallet drainers” you can eliminate?
Next month: Six tips for planning to buy a home.
Pamela MacDonald is a Welcome Home Loan Mortgage Loan Originator. NMLS #1385324.
New Hampshire Community Loan Fund, Inc. NMLS #253893. Licensed by the New Hampshire Banking Department.