5 Ways to Save Money for Your New Home

Are you preparing to buy a house, but don’t necessarily have the funds to do it right now? Saving money can actually be easier than you think. By simply making a few changes, you’ll be able to put a lot of money aside and make your bank account extremely happy. Check out the five ways below to help you save a little extra cash that will help you get into that new home!

January 20, 2020

Are you preparing to buy a house, but don’t necessarily have the funds to do it right now? Saving money can actually be easier than you think. By simply making a few changes, you’ll be able to put a lot of money aside and make your bank account extremely happy. Check out the five ways below to help you save a little extra cash that will help you get into that new home!

Automate your savings
Every paycheck, put aside some money into a savings account. Most workplaces will allow you to apply direct deposits into multiple accounts, meaning some of your money can go directly into that saving account for later!

Up your savings when you get a raise
An annual pay increase is an awesome time to boost the amount you’re saving. Saving more when you make more means you’re able to enjoy the extra money in your wallet while making big progress toward your financial goals!

Take advantage of your 401K Match
While your goal should be to increase saving contributions over time, contribute at least enough to qualify for matching funds. If your company matches up to 6 percent of your 401K contributions, for example, and you’re only contributing 4 percent, you’re leaving money on the table. Let’s say your company matches dollar for dollar - by contributing an additional 2 percent, you’ll actually up your savings by 4 percent because of the company’s match!

Bank any savings from rewards or windfalls
If you use a cash-back credit card or get yearly rewards from your favorite stores, consider diverting what you saved from getting those perks toward one of your savings goals. Likewise, if you get a windfall like a bonus or inheritance, spend a little bit of the money so you can enjoy it now, but then save the rest! Also, consider putting that money into an investment account that will earn interest and compound over time.

Remind yourself what you are saving for
Sometimes, it can be hard to save money instead of spending it on the things you really want right then and there. Consider creating a vision board with images and and words that represent your goal. Just have a reminder of your goals, this could help provide the extra motivation you need to boost your savings!

When you’re confident in the amount you’ve saved and you’re ready to tackle the homebuying process, reach out to one of our experienced loan officers to get the ball rolling - you’ll be in your dream home sooner than you think!