Saving for a down payment

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Message edited 1/15/2014 10:26:05 PM.

Re: Saving for a down payment

I don't think you're crazy.

A lot of people look at how much their rent is every month and would rather be putting that towards a home.

As a homeowner though, my only *warning* is that you are having difficulties making ends meet now, it can only get worse once you own a home. DH is self-employed, and the year after we bought, he had a really bad year and we had to drain our joint savings to pay the mortgage/taxes. I don't know what we would have done if there was something major that went wrong with the house. With that said though, now, I am always looking for similar tips, but to build my savings back up in general.

I think the key is cutting back on everything.

I find I spend a lot of money on things like groceries, take out and even my daily coffee habit. I often go to the store out of habit each weekend----not that we actually NEED anything.

Also look at the types of things that you buy at the store. I recently cut back on K-cups again because I feel regular coffee is so much cheaper and lasts a lot longer.

Maybe try having an extra $100 a week directly deposited into savings and see if you miss it.

Yard sales? I haven't had one yet but I have heard of people making $1000 at them.

Some of the ladies recently advised me on another thread to look into having due dates changed too for some of my bills.

If it wasn't our primary means of entertainment, I would also totally cancel cable.

Lastly, I am always of the thought that we can continue to look for higher paying jobs. Applying doesn't mean we have to take it. (On that note too I would not necessarily sacrifice quality of life for a higher paying job so you do have a lot to think about). Maybe look at P/T things that you can work when you want to work, vs. being tied down to something? (Contract/per diem stuff).

Saving for a down payment

Thank you so much for your reply! Really great suggestions.

Re: Saving for a down payment

No prob. Also just a suggestion, but you might get more traffic on the Home board or FHF. I often feel like people don't read this board.
;).

Saving for a down payment

DH and I don't make a lot of money, but we were able to save for a DP in 2 years.

- All raises/bonuses/monetary gifts go into savings.
- Bring breakfast and lunch to work. Try not to go out to dinner unless a special occasion. Eat your leftovers!
- If you drink coffee, make at home.
- Plan meals for the week based on grocery store sales.
- Coupon, buy generic brand products, stock up on sale (don't be a hoarder but if there is a fantastic deal on toothpaste buy a few)
- Negotiate for lower cable rates, shop around for lower insurance, etc. and put any monthly $$ you saved into savings.
- Buy gifts in advance if you see a good price. I have a ton of my Xmas shopping already by buying toys on clearance!