When you’re in the process of purchasing a home, having some money saved up is always a good idea. You may want to purchase extra décor items to make the home your own, or find that moving costs more than you planned, the money will definitely come in handy. But for many people, saving is easier said than done. Here are some easy ways you can get the ball rolling, presented by the Core Group.
Examine Your Spending
If you’re currently spending everything you earn as soon as it comes in, saving may not come naturally. Before you can cut spending, you have to have a realistic picture of how much you are currently spending and on what expenses. You can use an app like Mint to track your spending, or collect your receipts and record all of your spending on paper or in a spreadsheet at the end of the night. This will give you a full idea of what categories you are spending the most on and how you can bring them down.
One of the main reasons people have a hard time making a change in spending habits is because they try to take on too much too soon. Every dollar you can save will help towards buying your first home, so start with small cuts to the categories you think you are spending too much on. To avoid temptation, remind yourself that the money you save will go towards the purchase of your first home.
Tips To Cut Excess Spending
Here are some easy ways to cut back on unnecessary spending:
Cut down on eating out by cooking more at home. Even one less trip to a restaurant a week can easily net you fifty dollars to put in your home buying fund.
Negotiate lower rates on your bills, like cell phone and cable service. Look for areas where you can cut back, such as eliminating premium channels or cutting down on your data plan.
Use coupons and coupon apps to save money at the grocery store. If you’re a novice at couponing, try looking online at couponing websites that do most of the work for you.
Shop around on lower rates on your car or renters insurance. Many insurance companies will give you a free quote online or over the phone so you can compare rates easily.
Plan your trips to cut down on the amount of gas you use running errands. Try to do all of your shopping at one store or save longer trips for times when there is less traffic, so you waste less gas idling.