From Your President of the Pee Dee REALTOR ® Association Amy McCalman Kirby
Savings Strategies Every First-Time Homebuyer Needs To Know
If homeownership is on your goal sheet for your future , you ’ re probably working on your savings . And a big priority is making sure you ’ ve got a plan in place for things like your closing costs , down payment , and more .
Here are a few strategies that can help speed up that process .
Budget and Track Your Expenses : To start , create a detailed budget that tracks the money you ’ ve got coming in and the money going out . This ’ ll give you a better look at your finances as a whole .
Cut Down on Unnecessary Spending : Now that you have your budget sheet done and you know how you ’ re spending your money , look for any line items that aren ’ t absolutely essential . If you cut down on those , you can re-allocate that cash toward buying a home . Even the little things can add up . As the National Association of Realtors ( NAR ) says :
“ The majority of first-time buyers did make financial sacrifices to purchase a home . For those who did , the most common sacrifices buyers reported were cutting spending on luxury goods , entertainment , and clothes .”
Automate Your Savings : Once you know how much you want to set aside for your homebuying budget , look for ways to make it easy . If you have to transfer money manually , you may forget to do it . But getting some automatic transfers set up helps drive consistency and removes the temptation to spend it elsewhere . Realtor . com explains :
“ If you ’ re struggling to put enough money away because of the constant temptations to blow your paycheck , consider automating the process . Ask your employer if you can have your
paycheck deposited into multiple accounts — if so , instruct it to send a certain percentage of your salary directly into your savings account . Or go through your bank . . .”
Lean into Any Side Hustles You Have : Do you have a gig you do ( or have done before ) to net some extra cash ? Taking on part-time work , freelance jobs , or picking up a side hustle can help give your savings a boost .
Put any Unexpected Cash To Good Use : If you get any sudden windfalls , like a tax refund , bonus , inheritance , or cash gift from family , put it toward your house fund .
By using these strategies and focusing on your savings over time , you can make sure you ’ re well on the path to having what you need to buy your first home . As Ramsey Solutions says :
“ Budgeting shows your money who ’ s in charge ( that ’ s you ). It gives you the power to tell your money where to go instead of having to wonder where it went . It ’ s how you make any money goals happen — like saving for a down payment .”
Bottom Line
If you need more strategies for getting ready to buy , connect with a local REALTOR .
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