How To Save Money for Your First Home Purchase

Save Money for Your First Home Purchase

If the idea of saving money to buy your first home seems overwhelming to you, read on. We have some ideas to help you save money when buying your first home.

The following article was written by Laurie Blank, MPFJ editor. Laurie is a wife, mother of 4 children and head of household who blogs about personal finances, self-sufficiency and life in general at Frugal Farmer. Spiritual, introspective and stupid, her goal in blogging is to help others find their way to financial freedom and a simpler and more peaceful life.

The preparation for buying your first home can seem overwhelming. It is not uncommon to need $10,000 or more in cash when you buy your first home.

Usually, as a buyer, you will need at least $1,500 for the down payment in the form of a serious amount of money when they make an offer. At closing, your down payment must often be at least three percent of the purchase price.

In addition, you will need money to pay closing costs, property taxes, home insurance and more.

If the idea of saving money to buy your first home seems overwhelming to you, read on. We have some ideas to help you save money when buying your first home.

How to save money to buy your first home

Fortunately, there are many ways to save money to buy your first home. Use one or more of these options to quickly save money and become a homeowner.

1. Sell your equipment

Most people can search their closets, drawers and storage spaces for items they no longer need or want. Do it for yourself and pick up items you don’t need or don’t want.
Sell them through a garage sale, a Facebook market or a Craigslist. Use the rule “If I have not used it in the past year, it goes” when you are on the fence about what to sell. It will be worth getting rid of some things when you unpack the boxes in your new home.

2. Get a Side Hustle

A little help is an additional source of income to cover expenses – or, in this case, help you save for a home. There are many different options for earning additional income. Here are some ideas:
– Use your skills to start an independent business
– Get a second job in retail trade, catering or services
– Work for a carpool company like Uber or Lyft
– Start a service business such as child care, pet care or lawn mowing.
Commit to putting all the extra money earned on your side into a savings account for saving for a home.

3. A budget like that of a rock star

Another way to find money to save is to get on a very tight budget. Some people call it a Challenge Everything Budget.
First, if you don’t budget, start. Make a list of all your expenses and see how much extra money you have left. Avoid spending money on occasional expenses and save on payday instead.
Then, review each item in your budget. Find a way to reduce or eliminate this expense. For example, you could cancel your cable TV and gym membership.
Or, you can call for lower auto insurance rates. Another idea would be to commit not to go out to eat or spend money on entertainment for a period of time.
Instead, organize free rallies, such as game nights, hikes in local parks, etc. Put all the extra money into your savings.

4. Save unexpected money

Another idea for saving money is to commit to putting unexpected money into savings. Here are some examples of unexpected money:
– Tax returns
– Bonuses, increases or money for overtime at work
– Birthday and Christmas gifts in cash
– The money you get by returning the items you bought
Every time you find yourself with extra and unexpected money, all you have to do is deposit it directly into your home savings account.

5. Treat your savings like an invoice

Finally, save money for your home by treating your savings like an invoice. Using your budget, determine a m

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