Saving while renting is possible!
The idea of saving up for a home is an exciting one. You picture having your own yard that can host plenty of barbecues and your own space to make as much noise as you want without worrying about waking up the neighbors. But until this dream can become a reality, you have to save up for the down payment while paying the sky-high cost of rent. It might seem impossible to accomplish such a large savings goal while paying monthly rent, but it is possible with a few adjustments. Below we list a few ideas to help accelerate your savings!
Pay Debts and Set up A Savings Account
Have a plan in place to pay down debts
The more you pay down your debts before purchasing a home, the better you can free up extra funds for say, an emergency home repair. Being debt-free can also help raise your credit score, allowing you to get better rates for your mortgage. Setting up a savings account designated for your down payment is another great way to speed up your savings efforts. When you set up an automatic savings, the money is gone from your account without realizing it was even there!
Get a roommate
Splitting costs with a roommate is a great way to free up funds for a down payment. You can split bills such as gas, cable, water, and electricity along with the cost of rent. Want to save even more? If your apartment or home you are renting accommodates it, having multiple roommates will really crank up the savings by splitting the costs three or four ways!
Get a Second Job
It might sound daunting having a second job outside of your full-time position, but nowadays there are plenty of side gigs you can do that won’t inconvenience your personal life at all! If you have a particular skill, such as home repairs or graphic design, you can advertise your services on the many freelance websites available to earn extra money during your free time.
Prepare Your Own Meals
Preparing your own meals can save you a substantial amount of money.
An average lunch out can cost you about $10.00 a day and eating out for dinner can be much higher! You can easily save a few extra dollars a month by limiting how often you eat out. Preparing meals at home costs less and batch cooking ahead of time will ensure food is prepared for even the busiest days. You can have leftovers for lunches the next day and packing a few healthy snack options will save you from visiting the vending machine throughout the day.
Cut Back on Cable
The cost of cable nowadays is sky high! With the added service fees, you end up paying a bundle for a service you no longer really use. With more affordable streaming services available, you can easily drop your monthly cable service and still watch your favorite shows when it is convenient for you. Not only will you lose any bulking equipment, you will lose that bulky bill as well!
Conclusion
Saving up for a down payment while paying rent takes time and effort, but with a few lifestyle adjustments, you will be amazed at the amount of money you can put away to buy a new home. When you are ready to purchase a home, make sure to seek out a reliable mortgage company for the best rates possible. The experts at American Mortgage Resource, Inc. are here to help you purchase the home of your dreams!
