5 Creative Ways To Save For A Down Payment – Forbes

It’s time. You’ve rented long enough, and you’re ready to become a homeowner. But saving for a down payment is easier said than done. Here are five creative ways you can boost your savings in order to attain that coveted 20 percent down payment.

1. Find affordable alternatives

Many of the things you’re already paying for can be substituted or outsourced more affordably. For example, drop your gym membership in favor of working out at home. Or, lose the cable subscription and sign up for Netflix. And for all the programming Netflix can’t provide, there are bars and friends’ houses that are tuning into the same stuff. So check them out. After all, don’t we watch what we watch so that we can talk it about with someone else?

2. Turn your hobbies into side gigs

No matter how mundane or insignificant your talents seem, there are other people out there who don’t have those talents — and they might be willing to pay you for your skills. If you’re good at making things, look into selling your wares on Etsy. Woodworking, knitting, sewing, and graphic design are all in demand. Check out Taskrabbit, a site that hires you out to do household chores and errands for people in your community. Things like assembling Ikea furniture, shopping, pet sitting, and more can yield a surprising amount of money to add to your down payment fund. Ebay, too, is a popular source of cash for many people.

supercharge

3. Make it competitive

Saving money is hard, so why not make it fun and competitive? If you’re planning to buy with your significant other, competing to see who can save more benefits both of you. But single buyers can benefit from competition too. Find a friend who is in a similar position and create a savings race to motivate both of you to save more.

4. Reward yourself

Break your savings goal down into manageable chunks, and think of a low-cost reward for yourself when you reach a milestone. Treat yourself to a dinner, or do something free like going for a hike in your favorite wildlife preserve.

5. Turn your savings into more savings

Once your down payment fund starts to grow, it may be possible to turn that money into even more money through careful investing. Consider high-yield savings accounts, certificates of deposit, peer-to-peer lending and mutual funds. Be sure to get solid advice about whether your timeline is appropriate for different investment options, and carefully weigh the risks. If you’re unsure, use a high-yield savings account, which is one of the most conservative choices because they’re insured by the federal government.

Saving for a down payment is challenging, but it can be fun, too. Get creative, realize that it’s not forever, and you’ll be walking in the front door of your own home before you know it.

I Sell The Beach ©2016
Website Design and Development: TwinFin Media & Marketing
TwinFin Media & Marketing



©2015 An independently owned and operated franchisee of BHH Affiliates, LLC. Berkshire Hathaway HomeServices and the Berkshire Hathaway HomeServices symbol are registered service marks of HomeServices of America, Inc.® Equal Housing Opportunity.

Based on information from Sussex County Association of REALTORS®, Inc., which neither guarantees nor is in any way responsible for its accuracy. All data is provided 'AS IS' and with all faults. Data maintained by Sussex County Association of REALTORS®, Inc. may not reflect all real estate activity in the market. Berkshire Hathaway HomeServices Gallo Realty is a real estate licensee in the State of Delaware. SCAOR # SCAOR11210. Copyright 2015 Sussex County Association of REALTORS®, Inc.