Hannah Breyley
If you believe you are ready to purchase your first home, but your pockets feel a little dry, what can you do to enter saving mode? There are a few steps that can be followed to ensure the saving process is manageable and less stressful. Starting by outlining a budget that is detailed in terms of your income, how much you are currently spending, and what your saving goals are. This will be extremely important to help identify where you need to cut back in order to allocate funds towards closing costs.
Additionally, consider setting up a dedicated savings account that will be specific to the purchase of a home. Setting up an automatic transfer can be beneficial when trying to save. If you have a percentage of your income going straight into a special savings account that is not touched, you can steadily build your savings, possibly reducing the temptation to spend.
Reducing your debt is another crucial step in beginning to save for a home. There are certain debts that are high-interest, such as credit card balances which can highly impact your ability to save. If you put a focus on paying down these debts, you can effectively start saving. This will improve your financial health, and can also help raise your credit score, helping to secure a better mortgage rate in the long run.
Lastly, look for ways to increase your income! Do you have a hobby or passion that could turn into a side gig? Things like taking on a side-job or even selling things that you no longer need can add up. Every extra dollar from this step that you earn can be put into that savings account and go towards your ultimate goal.
Combining these strategies, you’ll be well on your way to achieving your goal of homeownership. Stay disciplined and dedicated will help you turn your dream of homeownership into a reality.