Looking for unique ways to save for a down payment? You’re not alone, and it’s more common that you might think. Having 20% of a home’s purchase price is your best bet. However, most of us don’t have that kind of money saved.
Unique Ways to Save for a Down Payment
- Start with a few calculations. How much does your dream house cost? What’s 20% of that figure? This is your aim. So let’s say you want to buy a home costing $240,000. 20% of that is $48,000. Next, what’s your timeline? For example, if you want to buy your new house in five years, you will divide the down payment by 5. Therefore, you will want to save $9,600 a year.
I understand that getting this figure just takes a few minutes on your calculator. On the other hand, saving is an different story. Good news!!! There’s unique ways to save for a down payment
1. Save what you can. Even if your contribution falls short of what you need, it will add up over time. Besides that, you can cut the cable. Many are using streaming services in place of satellite and cable TV. You’d be surprised at how much you can save – even up to $100 a month. If you have a landline and a cell phone, can you get rid of one of these services? It will add up.
2. Some families consider moving in together so they can both save for a down payment. You might worry if you’ll get along with each other. To be truthful, concessions will be necessary, but the result will be worth it. This can amount to a huge savings for both of you.
3. Can you dip into your retirement? Now I say this cautiously, because this shouldn’t be your first choice. This is your retirement you’re saving for, and it’s always best to leave it alone, however, some have borrowed from their retirement account with the discipline to pay the retirement fund back. However, you should always consider the tax penalties when you make choices like these.