3 Saving Strategies For Your House Deposit
Are you trying to save up for a down payment? When you’re trying to buy a new house, you need to be prepared to put down a significant chunk of change. But the good news is you can reach that goal with some strategic planning.
Keep reading to learn about 3 saving strategies for your house deposit!
1. Trim Retirement Savings
Even though it’s smart to contribute to your retirement account, you might need to ease up when saving for a down payment. Your long-term financial planning will need to account for a sizable chunk of change going toward that payment.
Back down your contributions temporarily to a 401(k) plan, for instance. If you normally contribute 6%, notch it down to 2%. Even this small step can add hundreds of dollars back to your monthly paycheck.
If you normally contribute to a brokerage account, put a hold on your monthly contributions, too. Just be sure to resume those contributions once you’re settled into a new routine.
2. Use Stricter Budgeting Habits to Save for a House Deposit
You may need to re-evaluate your budget when you look into buying a house. Those Saturday night movies and dinners out may need to go away for a while.
Take a look at your monthly spending habits. Find places where you can cut unnecessary expenses. Try to avoid racking up gas expenses by riding your bike places or taking the bus.
And it never hurts to ask for help when you’re buying a house, either. A good real estate agent or reliable friend can give you suggestions for budgeting. They’ll also be able to guide you toward realistic options for home affordability.
3. Get a Second Job
When you’re saving to buy a house, you may need to bring in more income. This can mean taking on more hours at your existing job. Or it can mean adding a side hustle after hours.
Look at your monthly income and determine how much you are able to save each month. Aim to boost that number by 10% or even more. And if you have a spouse or partner, ask them to do the same.
You can wait tables or work retail for more flexible times. As another option, look into tutoring kids remotely or in-person for a higher hourly wage. You may even be able to design and sell instructional videos through online platforms if you’re knowledgeable about an in-demand topic.
Sell used clothes online or old furniture. Try driving for a rideshare service during peak evening or nighttime hours. You may even want to rent out a room in your house to a tenant.
Start Saving to Buy a House
Saving for a house deposit might sound like a steep challenge. While you’ll need to tighten your budget and cut down on other savings, you can do it. Pick up a side hustle or sell off some belongings to start building the extra cash!
For more tips to get your finances in order, check back for new and informative articles.