Down Payment Saving Tips For Renters

If home ownership is a major goal for you, what’s holding you back? If you’re like most renters, it’s the lack of cash for a down payment. Saving can be easier than you think. Taking advantage of some simple saving habits will build your down payment fund, and before you know it, you’ll be making your move into home ownership.

What Can You Afford?

Figuring out exactly how much house you can afford is the best starting point, because it enables you to determine the amount you’ll need for a down payment. Assess your spending habits by analyzing your bank and credit card statements from the last three months to see where your money is going. Then identify areas where you can cut back, and assemble a detailed savings plan.

Where Can You Cut Back?

Depending on your area, transitioning from a one-bedroom apartment to a studio can help you save a lot of money in rent in addition to cutting your costs for your heating and air-conditioning bills.

Today’s modern area is making it super easy to take on a side gig. Opportunities continue to pop up like Uber, Lyft, and Postmates, a food delivery service. You can even pick up freelance work through services like TaskRabbit.com and AgentAnything.com. Take all that extra income straight to the bank!

Speaking of banks, have you considered moving your money to a high-yield savings account? This is a deposit account that pays a higher interest rate (or an annual percentage yield or APY) than a traditional deposit savings account.

An old-fashioned yard sale can help you unload items you no longer need while putting cash into your pocket and your home savings plan! Modernize this strategy by taking advantage of your online options like Facebook Marketplace, Craigslist, and eBay!