Creative Ways to Save Money for a Home Down Payment

1. Automate Your Saving

Arrange automatic transfer of money out of checking account and deposit into special home savings account on each payday. Think of paying it as a housing bill which is paid to yourself. With the process automated, there is no enticement to waste the money on something else and you will accumulate savings with ease.

2. Embrace the Side Hustle Culture

Side hustles such as rideshare driving, freelance writing, or virtual assistance or a side hustle related to selling handmade items online can all make you an extra bit of additional income to help your down payment fund be bigger. And the extra few hundred dollars a month (a hundred to three hundred) could amount to thousands of dollars saved in one year.

3. Downsize Your Lifestyle Temporarily

Think of long-term future by investing short term:

• Take a smaller rental or get a room-mate to reduce the housing expenses
• Cancel the subscriptions that are no longer in use, and renegotiate bills
• Prepare food in home rather than go to restaurant very often

Such modifications could be minor, but with them, you can drastically increase your savings.

4. Sell Unused Items

More than likely, you have a pile of electronics taking up space that you don not use. Moreover, you may have old clothing or furniture that is taking up space. Facebook Marketplace or OfferUp or eBay allows you to sell an item and add hundreds to your down payment account in short order. This strategy will create cash and lessen the clutter making it possible to later move.

5. Take Advantage of Cash-Back and Rewards Programs

Use the cash back credit cards to buy your day to day items (and then make sure you pay the bills each month instead of interest). Online shopping even comes with apps such as Rakuten or Honey giving you cash back used to contribute directly to your home fund.

6. Consider Employer and Government Assistance Programs

Home-buying assistance is one of the benefits offered by some employers. Also, you should do research on the local and state programs available to first-time buyers that either provide down payment grants or low-interest loans. Such programs will minimize the amount that you have to save considerably.

Final Thoughts

There is no need to have a home save-up be dreadful. Putting together clever ideas about saving funds on a down payment on a home like side gigs and lifestyle changes as well as taking advantage of financial resources can help you take the steps much faster than you imagine. Be reminded that each dollar you end up saving gets you one inch closer to opening the door to your dream house.