Saving up for a down payment can be difficult, especially if you are making rent payments at the same time! How can you possibly save up for a down payment when your normal bills keep getting in the way? We’ve got you covered! Check out our top 5 savings tips for renters, so you can make your dreams of home ownership happen!
Cut Out Silly Subscriptions
Although a $10 monthly subscription for the latest books, makeup or food planning kit might not seem like much on the surface, your nonessential monthly subscriptions can really start to add up! Save quite a bit per month just by cancelling or reducing monthly subscriptions, like gym memberships, magazine and newspaper subscriptions, and others. Instead, pocket that money and save for the home of your dreams! That $10 here and $30 there can quickly add up to hundreds or even thousands of dollars over the course of a year.
Reduce Your Cable Package—Or Forego Completely!
Who doesn’t love to plop down in front of the TV for a good weekend marathon of your favorite show? Unfortunately, your beefed up cable package may be costing you a substantial amount of money. Consider reducing your cable package, or getting rid of cable completely until you reach your savings goals. Instead, opt for a streaming service to get your favorite shows on the cheap!
Cut Commuting Costs
Even though the cost of gas has gotten much better over the past few years, your travel expenses could spell trouble for your bottom line. To cut your commuting costs, consider carpooling, taking public transportation, and even walking or biking. If none of these are possible, you can still save money by ensuring that you plan your errands efficiently, so you use as little gas as possible.
Double Down on Your Home Spending
While splurging on seasonal throw pillows and that perfect chandelier lighting might make your rental feel more like home, cutting down on your décor budget can help you keep more money in your pocket. To soften the blow, think of it this way: when you have your own home, you’ll be able to decorate it without inhibition!
Automate Your Savings
Freeing up your money doesn’t do you any good if it never makes it to your savings account. To make saving effortless, consider automating your savings, and paying yourself first. Once you have cut down on expenses, you should be able to calculate your savings, and set up a draft to your savings account through your bank. That way, you never have a chance to accidentally spend the money you’ve worked so hard to save. Even better, save the difference in your paycheck when you get a raise, and plop that tax refund in your savings account as soon as you receive it!
Even though you might be following all of these steps to save money while renting, you might still find the idea of a home down payment mind-boggling. Fortunately for qualified buyers, the NC Home Advantage Mortgage™ can provide down payment assistance of up to 5% of the mortgage amount to help you get over that major hurdle to home ownership.
Learn more about the NC Home Advantage Mortgage™ and how it can help you achieve home ownership by visiting www.nchfa.com/home-buyers.
