Homes are not cheap. To to be a homeowner, you usually have to start saving young and continue for several years. However, there might be a few ways you can afford a home sooner rather than later. Here are some of our tips about how to afford a house:
Adjust Your Lifestyle.
Try to start saving more than you already are. Keep a financial journal and log what purchases you make regularly. Every week, look back at the previous week and figure out which purchases were unnecessary. Once you have determined the unnecessary items, remove them and apply them towards savings.
Create a Down Payment Account.
Create a bank account that is specifically designated for your down payment. If you have a bank account, it will be easier to transfer funds into that account than if you are just setting money aside in your regular savings account. If you don't plan to buy right now, find a good mutual fund or other high risk savings (which often come with higher interest rates), and consider investing cash into the account in order to earn over time.
Harness Additional Income.
If you have the time, try adding a part-time job into your schedule. The extra income can all go straight towards your down payment. A part-time job does not have to mean flipping burgers or walking dogs. Perhaps the most painless route to extra money involves you considering any obvious or extra talents and capitalizing on them by advertising your freelance services online. You may be surprised at the response you receive, and how fast your savings can grow with an additional source of income.
Re-Gift Financial Presents.
If you receive money for a gift, apply it straight towards your down payment. The extra birthday and holiday money will add up, and you’ll be able to save faster than normal. If any gifts are particularly large, make sure to document the funds as documentation or sourcing may be requested by your lender.
Get a Roommate.
If you really want to save for a house, move back home with your parents or take on a roommate. This could very well sound like a nightmare, but cutting back on rent could be so financially beneficial that you'll likely see yourself sitting pretty with a hefty down payment less than a year from day one: living semi-uncomfortably.
Vacate Your Vacation.
If you’re used to taking a week long vacation every year, or even several staycations, it may be time to reassess your vacation strategy. Try cutting out a day or two from your vacation each year and applying it to your down payment instead. You will be able to save that much money every year while still being able to have relaxing getaways.