Saving for a down payment is not easy. There are a lot of things that need to change like the way you spend money and your saving strategies. But the feeling of finally financing your first home is simply exhilarating. The task of saving up for a down payment can be daunting. But we’re here to help. Here are some of the things that you can do to save up.
Calculate how much you will need
Before saving up, you must first know the amount of money that you will need. Choose a property that you see will suit you in the next few years and consult money lenders to calculate the cost of down payment. You can also use online mortgage calculator to get an estimate.
Open a savings account
Having a savings account lets you track how much money you currently have. Some banks allow to instantaneously transfer money bank forth from two accounts. This can help you to keep money aside right after your receive your paycheck.
Have a timeframe
Time is of essence when saving for anything. Having a timeframe will help you calculate on how much you have to save every month. It can also become your personal deadline on when you should start paying for your mortgage.
Budget, budget, budget
Your monthly budget will never be the same. Start cutting on those unnecessary Starbucks frappes and other trivial materials. Learn how to cut back your monthly expenses to make room for your down payment budget. Take a second job if you think your monthly income can’t support your monthly expenses and your savings.
Make it flexible
Of course your down payment is not the only thing that you have to save up to. Make sure that you have enough money for other expenses such as emergency funds, car maintenance, and so on.