Saving for a down payment is like a slow, painful marathon. You’ll get there in the end, but it can take a long time, and a lot of sweat and tears before you make it over the finish line.
A down payment can range from anywhere between 6% and 20%, but the amount you need for a down payment can depend on where you’re buying and your circumstances (such as buying alone or with someone else). Whatever the figure you’re aiming for, it can feel like it will take forever to get there.
But if you want to reach your down payment goal sooner, there are ways you can get there quicker. Take a look at some of the things you can do to boost your house savings, helping you to reach your goal faster.
1. Get frugal with your spending
If you want to boost your savings quicker, you’ll need to be more frugal with your spending. You can learn to live on a strict budget for a set period of time, making your savings a priority.
There are different ways you can cut down on your spending. Cutting your household bills is a great place to start, and could mean you save a lot more money each month. You may have to think about quitting the gym and cancelling some subscriptions for a while to help you add even more to your savings.
2. Cut down on eating out
How much do you spend on eating out each month. A daily take out coffee or a sandwich at lunch can add up to hundreds of dollars a month! By cutting down on eating out, you could easily boost your down payment savings. Some simple ideas to help you cut back include:
- Take coffee from home with you in a portable cup
- Make your own lunch
- Try some take out fake out recipes
- Plan your meals so you waste less food
- Invite friends over for dinner instead of going for dinner out
Eating out can be a bit of a treat, so if you can’t survive without eating out once in a while, set yourself a monthly budget for eating out that you must stick to. It will feel like more of a treat if it’s not always on the menu.
3. Consider investing your money
Investing your savings could help you grow them quicker. You can find out more about using a crypto exchange to help you get started. It’s important to remember that investing comes with risks, so it’s worth speaking to an investments expert to help you weigh up the pros and cons to help you decide if it’s the right move for you.
4. Make a short-term sacrifice
You could reach your savings target quicker if you make some short-term sacrifices. Giving up your car or moving in with your parents or a friend could help you save more money. It’s not always easy, but it’s a small price to pay for a short amount of time to help you reach your goal.
Saving for a down payment is hard, but if you’re disciplined and willing to make some changes to your lifestyle, you could get there quicker. The sacrifice will be worth it once you get the keys to your very first home.