Saving money for a house can feel overwhelming and impossible. No doubt it’s not something that just happens overnight! Today I’m sharing with you 2 proven steps to implement regarding how to save money for a house, the easy way (kinda)!
Determine How Much You Need & Be Realistic
The truth is saving for a house doesn’t mean just saving for the down payment, there are costs for inspections, valuations and other closing cost that people often forget about. When purchasing a home these are cost that can add up significantly. Therefore, I HIGHLY recommend you consider these when trying to figure out how much money you should save.
To help you determine what this number looks like for you consider the following points:
- Get pre-approved – This way you know what your overall budget is.
- Decide how much you want to put down for a downpayment. (5%, 10% or more?)
- Get quotes on how much inspections / valuations will cost.
- Ask you realtor for an estimate on closing cost.
- Decide if you want move in ready or a fixer upper. Then set a budget for renovations if needed.
After taking those points into consideration and realistically determining how much you need to save for your house, now you can figure out how much money to set aside each month/paycheck to reach your target. This leads me to the next step, budgeting.
Set a Budget
To successfully save money for a house you need to come up with a solid plan. This starts with managing your money effectively, and what better way to do so than putting together a budget.
To help you build better money habits and save money for a house, I have created a FREE Monthly Budget Template! All you have to do is sign up below and your download link will be in your inbox!
Join my email list to receive my free printable budget template to help you get started:
If it seems like it’s going to take you FOREVER to hit your target try these tips to help get to your goal faster:
- Cut back on expenses
- Pick up a side hustle
- Automate your savings
- Stop using your credit cards
I’m so excited for you to start your journey to homeownership and I hope you found these steps on how to save money for a house useful!
For more things to consider before buying your first home, check out my post on 3 Things to Consider Before Becoming a Homeowner :
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