4 Ways To Save For A Down Payment On A House

Saving up to buy a house doesn’t have to be so hard!

If you are planning to purchase your first home, you probably already know that it is a major financial decision. A house is usually someone’s greatest financial asset, and it is a commitment for up to 30 years.

When buying a home most people are going to first worry about down payment, how are they going to save up enough money to put a down payment on a house? There are many simple ways to begin saving up for a down payment and this article is going to outline my favorites!

1. Automate Your Savings Account

The easiest way to save money for a down payment is to automate your savings account. This allows you to transfer money from your checking to savings without having to think about it. You determine the dollar amount you would like transferred and how often.

If you want to save even more, you can set your account up to round every transaction up to the nearest dollar and the remaining change gets sent to your savings. For those that have a hard time manually transferring money into savings this is great!

Even after you have placed a down payment on a house you can continue to save this way and build up your savings even more.

2. Cut Bills One At A Time

Now that you are considering buying a house it’s time to start looking at your budget in various ways. Taking time to find things to cut out of your budget is a great step towards saving some extra money!

I went through my budget when I decided to start saving and found multiple subscription services that I realized I just did not utilize. I canceled my membership and began putting all of that money in my savings. I ended up being able to save an extra $70 a month!

I know $70 a month is not much when you figure you need $20,000+ to put down on a house, but every penny makes a difference!

3. Stash Your Tax Refund

Most taxpayers receive a tax refund from the federal government during tax season. This is a great way to set aside a couple thousand dollars for your down payment without having to actually cut any expenses.

4. Start A Side Hustle

Side hustles are all the talk these days. Odds are you know at least 1-2 people that have a “side hustle” of their own. Now it’s your turn! This is your time to use your hobbies to make a little extra cash.

My personal “side hustle” is a graphic design shop in Etsy that goes by the name The Trendy Realtor. All of the money made from your side hustle can go straight to your savings and you will have enough for a house in no time!

At the end of the day there are many different ways to save up money for a down payment you just have to figure out what works for yourself! Be realistic on what you can and can’t afford and create your savings plan around that. If you have suggestions or further questions for saving up to buy a house feel free to contact us! Be sure to share this post so others can start their saving journey!

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