Buying a home in this day and age can seem like a pipe dream. How is anyone supposed to come up with that amount of money? Fortunately, if you’re open and willing to get creative, there are ways to save enough for you to have the home you’ve always wanted. Here are five methods you might not have thought of that can help you boost your savings for a new home.
The Side Hustle Savings
The gig economy is still booming for good reason — it’s extremely flexible and lucrative if you know how to play your cards right. Consider taking up a few hours a week doing freelance work. No matter how much you make that week, that money gets directly allocated to a savings account. And you don’t touch that savings account until it’s time to make a downpayment on your home. You can even set a goal and watch the number rise as you get closer and closer to the moment when you get to make your dreams come true!
The Round-Up Method
Let’s say your morning cup of coffee costs $4.50. But you have a banking app that automatically rounds that to the nearest dollar, putting the difference in a savings account before you even have a chance to think about it. This is automated savings but with a twist; it helps you save while you’re going about your day rather than doing it in one lump sum. The small amounts might seem insignificant at the time, but just think: $.50 a day for three years is over $500 you’ll have in a savings account for doing literally nothing differently.
The Windfall Method
So you get a bonus at work or a particularly hefty tax return. Fantastic! Normally, you might spend that on a vacation or a new phone, because why not, right? Well, now you have something to work toward. So instead of spending this extra cash on something more frivolous, you’ll put it away in an account meant for your home’s downpayment. Do this with any unexpected windfall you see, and maybe even try combining it with the round-up method for a nice balance of aggressive and passive savings.
Sell Your Stuff
It sounds unorthodox to sell your things right before you buy a home — what are you supposed to fill it with? But truthfully, everyone has a lot of “stuff” they don’t need and they probably won’t want to take into a new space, either. Instead of waiting until you move to sell these items, find buyers now and put the money into an account that can gain interest. The sooner you sell these unwanted items, the more money you’ll make on interest while you’re shopping for homes.
Create a Savings Pact
The friends and family that save together achieve their goals together! Form a savings pact with friends or family members who share similar goals, even if it’s not specifically saving for a home. Don’t forget to check in with each other regularly, share progress, and celebrate milestones. You can even create a group on social media where everyone can share their wins or get motivation to stay on track.
