Tips for Saving for a New Home

If you want to build a new home, you’ll want to start saving your pennies now in order to have funds for a down payment. But don’t worry, there are manageable ways of doing it! Saving for a new home doesn’t have to be difficult. Embracing the mantra, “fix it up, wear it out, make it do or do without,” is a good place to start, but we here at Simplicity have some actionable tips that will surely help you save for that dream home of yours.

Start with the Biggest Cuts

Think about what you spend the most money on each month. If you’re like most people, your rent is probably the thing that is draining your finances the hardest. While downsizing can be more difficult for a family than it is for a couple or single person, consider whether or not moving into a smaller apartment, or even moving back in with your parents for some time, is possible. If it is, this alone could save you hundreds of dollars every month.

Give Yourself Something to Look Forward To!

 Remember – “make it do or do without.” This means that when you’re saving and on a budget, you should make every attempt to make do with what you currently have, and wait for shiny new things and upgrades until the time is right. In fact, if you cut back on buying new things, like new clothes and shoes, you’ll likely save a bundle.

You should also consider cutting back on entertainment purchases, such as the cost of cable or your weekly movie theater night, as well as other non-essential “extras.” Eating out less frequently, for example, could help you save money over time and improve your health. Speaking of healthy, another thing you can do is opting for commuting by bike instead of driving that gas guzzler to work every day. It could end up saving you hundreds of dollars, while also helping the earth and your health.

Set Reasonable Savings Goals

 You can’t save more than you make, and you can’t save everything you make! You’ll need food, utilities and other bare necessities of life! What you can do, though, is to take a good, thorough look at your finances and determine exactly how much is coming in, exactly how much is going out, and where you can make the reasonable cuts. If you think that you can live fairly comfortable with just 70 percent of your income each month, great! That means you can save 30 percent each month, and over just a few years, you can be in a terrific position to build or buy the home of your dreams. Establishing financial rules and goals are very common when trying to save for something as large as a new home. A budget is a key part of a savings plan.

At Simplicity , we understand that purchasing a home is a major financial decision, but we are here to help you every step of the way. There are people out there who are just like you who are actively saving for their dream home! At Simplicity, we design and build beautiful homes, and keep the cost affordable. Check out some of our recent projects. We hope you will reach out to us to learn more!