Saving for a Down Payment? Try These 12 Saving Tips

Kimberly Bean
Published on June 14, 2016

Saving for a Down Payment? Try These 12 Saving Tips

There are advantages to renting in Southern Maryland, aren’t there? No mortgage to pay off, no property taxes … and the landlord takes care of maintenance and repair costs.

But there’s one major drawback to renting: The money you spend on rent doesn’t gain you any equity in the property.

Many renters would like to own their own Southern Maryland home, but they struggle to come up with the cash they’d need to make the down payment. In fact, a recent survey by the website GoBankingRates.com showed that 1/5 of adults in the United States don’t use a savings account, while 1/3 of those who do use a savings account have no money in their account.

These tips can help you start saving so that you can buy your own Southern Maryland home.

Set a target

In order to know how much you need to save for a down payment, you need to know how much you can afford. When you have these numbers, put together a detailed saving plan to help you reach your goal. Setting a target will help you buckle down and put the money away because you’ll know what you’re aiming for.

Know your spending habits

Go through the last few months’ credit card and bank statements to figure out where your money is spent. That helps you focus on the areas where you can cut back.

Decrease your cable bill

The average household cable bill has skyrocketed in the last five years to about $100 per month, up nearly 40 percent since 2010. If you haven’t done it yet, cutting down your cable bill is a great way to save money every month. You can cut the cord, but if that is too drastic for you, talk with your cable provider about ways to reduce your bill or shop around for a different provider.

Get rid of your gym membership

Are you using that monthly gym membership? Make the outdoors your free gym. Jogging, cycling, and hiking are great exercise and don’t cost anything once you have the equipment. If the weather is bad or you’ve already got a membership, find a friend to join with you. Most gyms offer a discount if you get someone else to join.

Downsize your current rental property

Currently in a two-bedroom apartment? Downsize to one. Already in a one-bedroom? Think about whether you could live in a studio apartment. The rent on a smaller place will be cheaper – and so will the utility bills!

Make some income on the side

Technology has made it easier than ever to make money from a side job. What’s your skill? Perhaps you can find freelance work you can do from home. A part-time job can bring in extra cash if you’re willing to work during some of your free time. Car owners can jump into opportunities like Uber.

Get a high yield savings account

Keeping your savings in a checking account doesn’t earn you significant interest. Move your money to a high yield savings account to earn more interest.

Get a credit card with cash rewards

Got a no-frills credit card? Drop it and get a card that offers cash back rewards. These credit cards sometimes have a higher interest rate, to be sure you make regular monthly payments on time to pay off the card.

Set aside your tax refund

That tax refund is temping – who doesn’t want to spend it on something big and fun? But setting it aside can help you make big steps toward reaching your down payment goal.

Sell some of your stuff

You’d be surprised how much money a yard sale can bring in. Pick a day with a good forecast, and start selling! Post signs in advance of the sale (be sure to check local rules for doing so), and promote it online on Facebook and Craigslist. You’ll make a little money and declutter your home so you have less to move!

Sell your stuff online

Do you have valuable or highly sought after possessions? Don’t sell them at a yard sale; you’re likely to get more money selling them online through eBay. Large items of furniture, though, sell better on Craigslist or local bulletin boards and Facebook groups.

Hughesville MD Homes for Sale and Real Estate Services in Southern Maryland. You now have a search engine to help you with your Southern Maryland home search! And I’m ready to provide you with a custom home valuation if you’re considering selling your home. Let’s connect to discuss how I can help you. Contact Kimberly Bean at 301-440-1309

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