How to save for a house

5. Temporarily afford less retirement

If you are having a hard time saving enough money, you may want to temporarily pay less into your retirement savings. That way, you can save more money on your future home. However, diverting your retirement savings may not be a good idea if you are fast approaching retirement.

6. Get a more affordable place

Saving for a down payment can be a huge challenge for most borrowers. To make this easier, you may want to look for a cheaper home. For example, if you buy a home worth $ 400,000, you need to save $ 80,000 on a 20% down payment. While a $ 200,000 home only requires $ 40,000 for a down payment.

7. Downsize and reduce extra expenses

When you are saving for a home, it is a good idea to cut down on your expenses. Downsizing can help you save hundreds of dollars on your home closing costs. So avoid daily Starbucks trips, expensive gym memberships, and other unnecessary purchases.

8. Save your raises, bonuses and unexpected winnings

It is tempting to spend that unexpected bonus or tax return, but saving it will help you reach your home goals faster. Whenever you get an unexpected windfall, deposit it into your savings account instead.

9. Get a sideline to make extra money

Finally, if your current income levels are not enough to save you, you may want to take on a side job. Freelancing, driving Uber, or delivering meals with DoorDash are all sideline jobs that you can do in your spare time. This is a sacrifice, but it can add hundreds of dollars per month to your savings goal.

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About Natalee Broderick

Natalee Broderick

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