According to a recent survey, about 65% of Americans don’t save a single penny when they get their paychecks. A lot of people tend to live paycheck-to-paycheck, and as a result, they struggle to save money. This can obviously make it very challenging for people to go through the process of saving money for homes. When you don’t have a ton of extra money coming in every month, how are you supposed to hit a home savings goal in a reasonable amount of time?
If you think buying a new home might be impossible for you because you’ve been unable to save much money, you might need to start looking at things in a new way. You should learn what you’ll have to do to start saving enough money to purchase a home in the end.
Here is everything you need to know about saving money for homes.
Start by Deciding How Much Money You’ll Need to Save
Before people can start saving money for homes, they need to know approximately how much they’ll have to save. Otherwise, it’s going to be very difficult for them to reach any kind of home savings goal.
You should begin comparing home prices in your area and then see what you can actually afford. This will give you some idea as to how much money you’ll have to save to buy a home.
This exercise will automatically give you a goal to work towards in the coming months and years. You’ll be able to set your eyes on the prize and work as hard as you can to put yourself in a position to buy one of the types of homes you want.
Create a Monthly Budget and Stick To It
If you’re not already using a monthly budget to keep track of your income and expenses, you’re making a big mistake. Your lack of a budget will make saving money for homes harder than it has to be.
By setting up a budget, you’ll be able to monitor each and every dollar that you both earn and spend. You’ll get an opportunity to see where you might be wasting money so that you can create a surplus for yourself each month.
It shouldn’t take too long to tinker with your budget so that you’re able to bring in more money than you spend on a monthly basis. It’ll give you the extra money that you’ll need to eventually hit your home savings goal.
Aim to Eliminate Debt if You’re Carrying It Around
The average person is walking around with over $6,000 in credit card debt. They also have student loan debt, personal loan debt, car loan debt, and…well, we think you get the point!
Debt is bad—and not just because it can bring your credit score down and affect your ability to buy a house in the first place. It’s also bad because it’s going to force you to pay money every month for, in many cases, nothing. Your debt payments are going to cover the interest that you’re accruing on your debt and little else.
For this reason, you should aim to pay down as much debt as you can while saving for a home. Even if paying down debt delays your ability to purchase a house a little, it’ll be for the best.
See if You Can Find Additional Sources of Income
If you’re living even close to paycheck-to-paycheck at the moment, you may be wondering how in the world you’re going to pay down debt and start saving money for homes. It’ll seem like too tall of a task.
But there is one easy way to do it. You can try to find additional sources of income.
In some cases, this might mean asking your boss for a raise at work. In others, it might mean getting a second (or even a third!) job. These things can increase your income and provide you with a bigger shovel to dig yourself out of debt so that you can start saving money for a house.
Try Selling Some of the Things You Don’t Need Anymore
Do you have anything of value that you could sell to earn some extra money? Chances are, you have at least a few things that might be worth money that you can turn into cash.
You could sell something as simple as unused gift cards for a quick profit. More than 50% of people are walking around with them in their wallets right now.
If you happen to have some unused gift cards, you can turn them into cash by selling them online. You can also visit a gift card exchange kiosk to get cash for them.
Go to bytefederal.com to see how a kiosk like this works. You could be sitting on a goldmine and not even realize it!
Remind Yourself About Why You’re Saving Money Early and Often
Listen, we’re not going to lie to you: Saving money for homes isn’t going to be a walk in the park! There will be times when you’ll want to throw your hands up in the air and stop trying to save for a house.
In these moments, you should close your eyes and remind yourself of why you’re working so hard to save. Tell yourself that saving money for homes will all be worth it and that you just need to keep pushing forward to hit your goal.
People Should Start Saving Money for Homes Today
The real estate market is on fire right now. Because of this, it’s really not a great time to buy a house.
But that is likely going to change within the next couple of years. And when it does, you’re going to want to be ready to pounce on the opportunity to buy a home.
Get ready for it now by saving money for homes. Use everything that you’ve learned here to save money so that you’ll have it when the time comes.
Get more tips on buying a new home by browsing through our other blog articles.