Your Special Account
Next, set up a special account for your down payment. Don’t co-mingle your down payment money with the money you use for regular expenses. Consider selecting an interest bearing account that will earn a little extra money just for sitting there. Make regular deposits into the account.
Consider cutting out extra expenses. If you have a tendency to eat out frequently, take a look at cutting out at least one trip per month. Over the course of several months, this may save you a tidy sum of money. Also take a look at other extra expenses, such as entertainment and possibly even your clothing budget is you are an avid shopper.
What about hobbies? Do you contribute a significant amount of money towards purchasing items for a collection? Thinking about taking a few steps back and putting that money towards your down payment account for awhile. What about sodas, cappuccinos and cups of coffee? Do you spend more than your fair share on drinks per day? Just cutting out one a week can go a long way towards your goal of saving for a home. Instead of eating out for lunch, pack a sandwich and a piece of fruit. You may lose a little weight and you’re down payment fund will get a little heavier.
Do you live close enough to walk to work? Think about how much doing that just once or twice a week would save. Even if you don’t live close enough to walk, give serious consideration to setting up or joining a carpool. Not only will you be doing a good turn for the environment, but you’ll get a little closer to having your down payment as well.
If you do receive a little extra cash, for birthday presents or as refunds, deposit it directly into your down payment funds. Don’t even think twice about it; if you do you’ll be more likely to spend it on something frivolous and still be short the money you need for your down payment. Think about auctioning off some items you don’t need or don’t use anymore.
Plenty of everyday people make extra money by utilizing on-line auction sites. What you may consider to be worthless dusty junk could be the treasure someone is looking for and would be willing to pay top dollar for. Items that fetch the best prices are collectibles, antiques, designer clothing and college/university textbooks.
Save your pocket change-literally. All those lovely little coins can add up to a healthy chunk of money. Get in the habit of emptying your pockets every night. At the end of the week make a deposit into your down payment account.