Saving for a downpayment for a house can seem scary and sometimes one of the reasons people continue to rent instead of own, but Jeremy Nelson has some great tips for saving up for that down payment!
Hey there, Jeremy with Twin Cities Elite Real Estate Group. In this video, I want to chat with you a little bit about how to save for a down payment.
One of the first things you’re going to want to start with is making a plan, figuring out how much you want to have for that down payment, and setting the timeline for it. Once you have that figured out, if you’re looking at having 3.5, 5, 10, 15, 20% as your down payment, I find that super helpful to work backwards in the math itself on how much I need to set aside. So, I have my goal at $10,000, let’s use it as an example, and I want to get it accomplished in a one-year timeframe. I’ll then figure out how much I need to make sure I set aside monthly for it. And at the same point, potentially breaking it all the way down to weekly. Make sure you get yourself that savings account set up and then getting that money set it aside.
Once I have that figured out, I also like to look at tracking my spending. How much am I spending? Where am I spending it? That’ll really help you accomplish your goal. You’re able to take a look through and see where you’re spending money where you don’t need to be. You could be looking at subscriptions that you don’t need, like Netflix or Amazon. Also, take a look at if you go out and get a lot of $5 coffees or eating out. So trying to eliminate that as well, that’ll help save you to accomplish your goal.
From there a few things you could start to look at to help save towards that ultimate goal, you know, what are your high-interest credit cards that you might have with outstanding debts, working on getting those paid off as well. So you’re not spending money that you don’t need to be spending.
Once you get a lot of the majority of that knocked out of the way, I think it’ll the rest of it will really start to fall in line with what other things you could be doing. Let’s say if you get an extra lump sum of cash for a birthday, whether it’s Christmas or a holiday, I mean, that was money you weren’t expecting to have, so put it away as stash money.
Above and beyond that, there’s a lot of other things we can do to help accomplish that goal with you. So please feel free to reach out to myself and/or anyone with the Twin Cities Elite Real Estate Group. We’d be glad to help you out with it. Thanks.