One of your goals for this year might be to buy a new home or start saving up for one. How do you begin? The smartest way to save for a new house is to plan wisely. Below is a closer look at how you can save up more quickly.
How Much Should You Save Up?
In normal circumstances, you will need to save up for a minimum 20% down payment. Estimate your budget for a new home and calculate what 20% of the total cost would be. At a minimum, you can aim to save up for this much.
How to Save for a New House
Live as If You Are Paying the Mortgage Off
Another way to ready yourself for home ownership is to live as if you are currently paying off the mortgage. Your monthly payment will depend on the mortgage type; for example, it is common to pay off a mortgage in equal increments over 30 years. Calculating this cost and implementing it into your daily life will help you get used to home ownership and help you save.
Temporarily Cut Out All Extra Spending
The “no-spend challenge” can help boost your savings. For a set time, such as 1-3 months, you can cut out all unnecessary expenses. The only expenses you will allow yourself to make would be for housing, utilities, groceries, and transportation.
Do you have a lot of items in your house that could be fodder for a yard sale? If so, now is a great time to declutter your home, make some extra money, and put those earnings into the new home fund.
Get a Side Hustle or Higher-Paying Job
Cutting costs is only one side of the coin. You can save for a new house by making more money, too. Getting an interesting side hustle or even a higher-paying job will do the trick.
It’s possible to set up your bank account to put a percentage of your paycheck into a savings account automatically. Automating your savings will make it far easier to save up seamlessly.
BUILD YOUR WATERFRONT DREAM HOME WITH SHORE-LINE CONSTRUCTION!
At Shore-Line Construction, we know that your home is a reflection of you. That’s why we strive to make each home we build as beautiful as the family who will live there. We work with each of our clients to design a home that fits their needs. The end result is a durable, energy-efficient custom home that the family will enjoy for generations to come. Shore-Line Construction has been serving our customers for over 25 years, and we look forward to the opportunity to help you!
If you’re interested in learning more about what Shore-Line Construction can do for you, check out our website or give us a call at 410-574-6623. Keep up with all of the latest news by following our blog and social media pages on Facebook, YouTube, Pinterest, and Houzz!