How To Save For A Down Payment
Buying a home is something that everyone looks forward to in their life, but what most people don't know is that sometimes they will need a down payment. Or even if you don't NEED one, it can always be a great help to you in the long run when purchasing a home! So then that begs the question: "How do I even start to SAVE for a down payment?" No need to wonder, I am here to help guide you!
Here's 3 steps that are so simple, that it's basically automatic:
1. Set Your Goal
It's important that the first step be for you to consider where you'd like to live, how much house you'd like to buy (square footage, levels, etc.), what your income is and/or will be and who's in the house with you. Most often with lenders nowadays want up to 20% down on conventional loans. But there are other options to consider including FHA, VA, and USDA loans, to see if you qualify for. There are mortgage calculators that you can test down payment, price and monthly payments scenarios, and then set your down payment goal.
2. Visualize It
Now that you've set your goal, it's time to set the plan in action. Most often when athletes are first starting out, their coaches will tell them to visualize where they want to be in the near future (maybe 3-5 years) and tell them to set goals based off of that. So it's important to visualize how you're going to feel like when you buy, move into, and put a nice down payment on your future home. Feels great right?! It can be a reality!! A helpful hint to kind of keep you on track when you get tempted to spend the money you're trying to save is to print out pictures of homes that inspire you, or that you dream about owning, and put them in places that you will frequently be able to see them (your wallet, the fridge, your room, your car, etc.) that way you will always be reminded of what your goal of saving your money is really meant for. Your future self will thank you for it, I promise you that!
3. Make Every Latte Bit Count
See with this step, it's so very simple, but it seems to be the hardest one of them all. What's great is that you have so many different options to help grow your savings! Whether it's having a designated "Savings" jar, or opening an interest-growing savings account, this is a GREAT step towards the right direction. So where do you start? Well, what you need to do is take (what I like to call) your "Latte factor" and put that towards your savings.
So what exactly is your "Latte factor?" Basically, anything little things you would normally spend money on that's not a "necessity" to your every day life (Starbucks, eating out, bottled water, etc.) you would take those few dollars you'd spend and put it in your savings. That way each week, and over time, you are putting your money towards something that is only ever going to benefit you without sacrificing anything too important! It'll be hard at first and if I'm being honest, you will fail some days, but that's okay! As long as you try and stick to is as best and much as possible, you will get to where you want to be!