Start saving money by making these small changes!
Saving money for your down payment seems like a very challenging step. This is especially true if you’re not keen on saving money or planning your finances at all. But sometimes, all it takes to get started is making small changes to get things moving in your favor financially. Learn self-control, make wise decisions and start saving money today to reach your goal of owning your dream home the soonest! Here are some tips to help you get started.
1. Don't give in to the power of marketing
One big way to save money is to drastically cut down on the amount of television and YouTube videos that you watch. You'll notice that when you constantly expose yourself to ads and sponsored content, you're in high risk of eventually giving in to the temptation of making more unwanted and unnecessary purchases. That's the power of marketing. Less exposure to these will result in a lower electric bill (and perhaps a lower cable or internet bill if you downgrade your subscription), a huge cut-back on unnecessary purchases, and more time to focus on other things in life — such as a side business — and so on.
2. DIY Gifts
If you want to save money while also giving generously, creating your own homemade gifts is one way to accomplish both goals. It's the thought that counts anyway. Make mason jar sewing kits for your girlfriends, knit or crochet cute hats for their babies, mix up a mean barbecue rub for your guy friends, the list goes on!
3. Wait 30 Days
Avoiding instant gratification is one of the biggest game changers in saving money and waiting 30 days to decide on a purchase is an excellent way to implement that rule. You'll find that after a month or maybe within a month, the urge to buy something have already passed. This is especially true for bigger but still unreasonable purchases. If you’re on the fence about a purchase anyway, waiting a while can give you a better perspective on whether it’s truly worth the money.
4. Make a list and stick to it
Make a list before you shop. This is most commonly applicable when going to the grocery. When you go rogue and shop without a list, that is when you typically end up making impulse buys - stuff that you don't actually need and will eventually go to waste.
5. Clean out your closets
Go through your closets and weed out stuff that you haven't used in the past year. You can have a yard sale with the things that you find or sell them on eBay or Facebook buy and sell groups. You can also take them to a consignment shop or even donate it for the tax deduction. You'll have instantly decluttered a major portion of your home while turning in some profit.
6. Bank those windfalls
You can make the process of saving money for a down payment on a house easier or even shorten the process by banking periodic windfalls. These can include income-tax refunds, financial gifts or incentives, bonuses or large commission checks, or even the sale of personal assets.
By depositing these funds into your down payment savings account, you fast-forward the process of saving money to buy your future home. Regularly depositing a few thousand dollars per year in windfalls can chop a couple of years off of your savings timeframe.
7. Have a flexible savings plan
While you’re saving up money for your down payment, there will still be other expenses that might require you to dip into your down payment money - if you let it. Just because you have a goal of saving money for a down payment on a house doesn’t mean that you get to press pause on all other expenses. These can include major car repairs, replacement of a car, uncovered medical expenses, or even the temporary loss of a job. You’ll have to be ready when these things happen. For this, you will need to make sure that you have a well-stocked emergency fund before you even start saving for your down payment.
Speaking of savings, are you saving up in preparation for buying a new home or for relocating? If you’re looking into finding your dream home in Fort McMurray, we’re here to help you out! A few quick links in our search form will get you started!