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How To Save For A Down Payment On A House – 5 Easy Steps

We get asked all of the time, “How much money do I have to put down? Do I have to put down 20 percent? The answer is, it depends on your loan. Down payments can range from 0-20 percent of the home’s value, but the more you put down –  the lower your monthly payment will be. Here are 5 easy steps to saving towards a down payment. You’re home buying process begins here.

  1. Get a Second Job/Side Hustle

A part time job would be a perfect way to dedicate that income towards a down payment. Depending on how many hours per week and your hourly rate – you could have a down payment in as little as no time! 

  1. Set Aside a Fixed $$ Amount Every Month

If you have a guaranteed set income every month – then it should be easy to establish a set amount to save every month towards your down payment. You can use a free budgeting app to determine how much you want to put towards savings after you pay your bills. 

  1. Skip a Vacation

The average person will spend about $1800-$2500 on a one week vacation. That’s estimating $210-$310 a day for hotel and food, and just under $400 for airfare. That doesn’t include car expenses or attraction tickets and tours. According to Kim, a vacation blogger. 

  1. Sell Stuff/Investments

If you have any stocks or investments, now might be a good time to cash in and liquidate If you are looking to put down a large amount of money. You can also look to start selling your belongings that you don’t use any more, such as: collectibles, furniture, or clothes, etc. Today, there are so many platforms where you can participate in ecommerce by selling used or new items. Any little bit helps! 

  1. Lower Your Expenses

This is a good idea even if you are just looking to get some extra disposable income every month. A few easy ways to cut back on your expenses are:

  • Give up a bad habit
  • Buy generic groceries
  • Stop splurging
  • Stop eating out as often
  • Cancel gym memberships, streaming services, cable, etc.

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