5 Ways To Save For A Down Payment On House

Is renting really throwing money away? If you think so, then we know you're still stuck in the nightmare of a renter. Perhaps it's time to look at the real estate market, but there is still a problem. You do not have savings for a down payment. People save for years in order to make a down payment, but living on rent makes it difficult to save. The higher the down payment, the lower the interest and mortgage payment would be. Here are a few strategies that will help you rapidly save your down payment.

As Deacon Hayes, the owner of financial education company Well Kept Wallet says “Renting might seem fine at first but once you have enough money to put down on a home, then it makes more sense to buy.”

• SPECIAL SAVINGS ACCOUNT:

Holding 20% of your earnings aside for the down payment will be a good choice. If you stash this money in a regular savings account, you will not earn any interest. Check for special accounts promising a higher rate of interest. You will be able to gain more cash and meet your saving targets quicker if you were given a higher interest rate. Even if you don’t have a special savings account, making a direct deposit into your regular account won’t make you lose your money. You have to make sure that in any operation other than the down payment, you do not use this money. A decent amount of down payment will be saved in two years. For the saving process, a lot of patience is required, but hard work pays off.

• GET A SECOND JOB:

Having a second job is the solution if you are searching for a way to turbocharge your revenue. I know that doing more than one job is not an optimal employment situation. But when it comes to purchasing a home, you have to go through a tough patch. Don't torment yourself with your second job. Here are some examples of side gigs that would give you extra cash to make savings and pay off your bills:

• If you like pets, you should let your family, relatives, and neighbors know that the next time they are going on a long vacation. You'd be there to look after their pets. Of course, for cash!
• Turning your vehicle into an Uber. It might also make some money out of it if you're heading back home from work. You can register to Uber and take passengers when convenient to you.
• If you are qualified enough to have a job, it would not be an issue for you to teach some basic courses to primary students. You can sign up for online tutoring.

• CUT DOWN ON YOUR EXPENSES:

You need to cut back for a bit on all of your extra expenses. You'd be shocked by how much cash you find when you pay attention to your expenses. Here are a few ways that you can reduce your expenditures and save money.

• You can cancel your membership at the gym. Alternatively, to burn calories, you can take a walk or jog in your lane.
• Try wearing old clothes for some time. But if you really want to shop, don’t buy your clothes from a branded store. You can get the same designer items for a cheap price at a thrift shop.
• Create and keep a shopping list of the essential necessities. Don’t waste cash on all the junk food. Purchase those things that are on sale.

You'd be shocked to see how these few ways can save you a great deal of cash.

• CLEAR THE CLUTTER:

There are some things that are of no value to you in your home. They take up needless space in the house around them. As you have an intention to buy a new house, this would help you clear the unnecessary stuff and make money out of it as well. The best stuff to sell:

• Childhood toys: I agree that we have a close bond with our childhood toys, but admit that we're now old enough to give them up. The best site to sell them off will be eBay. Before you make a bid, make sure to see the competitive rates.

• Pre-loved clothes: You've got an amazing party dress hanging in the closet that you've worn a couple of times before. Or maybe you're wearing a shirt or jeans that no longer belong to you. Finally, your inability to let go of your old favorites might pay off.

• Your hair: Not just kidding! For your beloved hair, you might earn some serious cash.

• Old DVDs and games: Tired of looking tangled over and over again. Sell it away to someone who hasn't looked at it yet. You might have a stack of such CDs.
• Empty jars and boxes: You can have some empty jars and boxes in your store that take up space. Selling it to passionate jam makers or someone who can make good use of it will be a good idea.

• RETIREMENT PLAN: 

Suspend your retirement account investments for some time. Ideally, your retirement contributions are 15 percent of your household investment. If you've been saving for quite a while now, you're going to have enough cash to borrow for your down payment. But make sure those withdrawals are penalty-free. There will be no harm from a one or two-year delay in your retirement savings. Once you have got your own house, you can hop back to your retirement target.