For many buyers, the hardest part is saving for a down payment and closing costs. Read through our 10 tips for saving money quickly, and then contact us for our preferred lenders. Our lenders can help you repair credit and get on track to purchasing your first home. Whether it takes weeks, months, or years, we are here for you!
The secret to saving quickly comes from automating the way you pay bills and invest.
Download apps to help you save and invest
You're already using your smartphone every day, so why not make it your avenue to a large savings account. Download a budgeting app that you like, and track your funds. Sometimes, all it takes is seeing where you're money actually goes in order to start cutting back on spending and adding more to your savings account.
Set up automatic payments for bills
The saying goes, out of sight and out of mind. If you set up automatic payments, it takes the hassle of remembering when bills are due. But also, most companies give you a discount for setting up automatic payments, and pennies can add up! Paying bills consistently also helps your credit score, which can save you money when it's time to buy a home.
Look into your workplace retirement contributions
Many employers match retirement contributions. This means, if you put in $100 a month, so will they! It's essentially free money that you can take advantage of, but you need to ask your workplace in order to specify how much they will match and how you can receive that money once you retire. If you're adding wealth into your retirement account, that's less stress about money now.
Sign up for automatic transfers from your checking into your savings
When the money is placed in your savings every month, it's easier for you to budget with the remaining balance. Try it out with $10 a week, see how it feels. If you can contribute more, slowly increase that amount until you're comfortable. Small additions to your savings is better than no additions at all, and when it's automatic, it's easy!
Shop around for better rates
There are many services we pay for, that can be reduced by completing a few phone calls. Shop around for multiple quotes with your car insurance, alarm company, TV and Internet provides, phone companies and more. You'd be surprised at how fast a discount of $5 here and there can add up to a big savings.
Direct any windfall money
Windfall money are things like tax refunds, gifts, stimulus checks, work bonuses, and any other unexpected money. Fight the urge to splurge! Add it all to your savings. If you want to treat yourself, keep the cost under $20. Go out to dinner or treat yourself to something small, but place the rest into savings! This boost in your savings will also boost your confidence, helping you to feel good about saving.
Use credit cards wisely, only for emergencies
Credit cards can be your worst enemy for wealth. They are great for building healthy credit, but try to use them only with introductory zero percent APR and pay them off quickly. If you need a credit card to afford it, chances are, you can't actually afford it and will be paying interest for years to come.
Eliminate high-interest debt
High-interest debt hurts your wealth, plain and simple. Pay it off directly or replace it with lower interest debt. For example, reducing your auto loan rate by just two percent on a $20,000 loan will save you $400 a year. Try to pay off your highest interest loans first.
Choose the right bank
Banks are always looking for new customers, and some might have great offers to convince you to switch. Look for sign-up bonuses, cash incentives, and no fees. If your bank is charging you fees left and right, chances are that can add up very quickly. Find a bank that charges little to no fees, they exist!