Almost everyone has the dream to one day be a homeowner. However, this is much easier said than done, especially for people who live in areas with expensive housing markets or who don’t make quite enough to cover their needs each month. Luckily, there are some great things most people can do to make saving for a home, or just a down payment, less stressful than you may have imagined. To show you how, here are three ways to make saving for a home simple and easy.
Fiddle With Your Current Budget
If you want to truly be getting your money’s worth from your income, you should be using a monthly budget. Depending on how your income and expenses level out, you may have a decent amount of disposable income each month that isn’t spent on bills or other payments. If this is the case, Kevin Mercadante, a contributor to MoneyUnder30.com, recommends taking that money and putting it all into a savings account specifically for your future home. However, if you don’t already have some excess money worked into your budget for discretionary spending, you’ll likely have to cut back in some areas to create room in your budget for a home savings plan.
Split Your Direct Deposit Paycheck
For convenience, many people choose to have their paycheck directly deposited into their bank account rather than getting a paper check that they then have to deposit themselves. Along with this feature, Jeff Reeves, a contributor to USA Today, recommends talking to your HR department and having them put a portion of your paycheck into your checking account and another portion into your savings account for your home. By doing this, the amount you want to save is automatically taken out before you even see your paycheck reflected in your bank account, making it a little easier to section it off into your savings account.
Save Any Windfalls
There will come certain times in your life where you’ll get some kind of larger influx of money that you weren’t necessarily expecting. Peter G. Miller, a contributor to TheSimpleDollar.com, shares that some of these windfalls could include bonuses at work, a large tax refund, or money from gifts such as birthdays or weddings. When you suddenly get some money that you weren’t expecting, plan to stick that income straight into your home savings account. This action will help you reach your savings goals faster and won’t affect your monthly budget at all because you weren’t actually expecting to get this money.
If you want to begin saving for a home but are intimidated about the amount or aren’t sure how to start, use the tips mentioned above to help get you there.