- Andrew Abbott
5 Ways to Save for Your Down-payment
Buying a house is expensive... Likely the most expensive purchase of your life. And saving enough money for a down-payment can seem like a nearly impossible task. Whether you're saving for your primary residence, or for your first investment property, you will need some cash! Lucky for you, the guys at AP Real Estate Investing (trademark) have 5 simple and easy ideas to help you start saving for that first home.
1. Play the Lottery
quickest and easiest way... enough said
2. Get a Second Job
On a more serious note, probably the best way to start saving is to get a second job working evenings and weekends. Not only will you increase your income, but you won't have time to spend all your money at the bar. It's a win-win situation... Ya, you won't have much of a social life, but you'll get over it. I paid off over $20k in student loans over the course of two years by working a second job (sweet brag, I know). So stop making excuses and GET A (second) JOB!
3. Track Your Income/Expenses and Budget
If you're not already doing this, then you probably aren't ready to buy a house. So I would take a Personal Finance 101 course and then come back to this website. In all honesty, though, once a week copy your bank statement into Excel and create a new column every month. After a few months, you can determine how much money on average you spend on food, alcohol, gas, groceries, etc every month... the results can be astounding.
4. Start an Acorns Account
Acorns is an app that allows users to turn investing on autopilot. The concept is simple... download the app, select from 1 of 5 investment strategies, link your debit/credit card, then, for each purchase you make, Acorns will round up to the next dollar and invest the spare change for you. To give you an idea, I've been using the app for about 2 years now, and I have $1400 saved up. You also have the option to set up automatic deposits on a recurring basis. Check the website for more detail.
5. Cut Unnecessary Expenses
This one may seem obvious, but it is still worth listing. Think about everything you spend money on... rent, car payment, car insurance, cable, internet, gym membership, Netflix and Hulu subscriptions, four bottles of Maker's Mark every month (who's counting). Maybe you move back in with the parents and live rent free. Maybe you cancel your Netflix, Hulu and cable subscriptions. Maybe you cut back on the drinking ever so slightly, or just find a less expensive substitute. There are plenty of ways to cut back on expenses. You just need to be willing to make some sacrifices.
Remember, saving money takes time... Be patient, exercise restraint, and stay focused. Eventually, you will be ready to purchase a home.
Hopefully this list gave you some good ideas. Or at least helped you realize you need to get your finances in order. Either way, I'm glad you took the time to read it and hope you share some of your new found wisdom with friends and family.
As always, thanks for reading. If you have further questions, please don't hesitate to contact us. Check us out on our social media account accounts below and be sure to subscribe! Enjoy your week and keep grinding!