How to Save for a Home

Housing prices are low, rates are low but how can you buy a house when your funds are also low?  How can you save money for a house while prices and rates are still good?

Saving for a home can be different than just saving because you have save such a large amount of money and you don’t know exactly how much you’ll need.  Here are some strategies on how to save up:

1. Start with small goals. Try saving for closing costs or another smaller amount and then add another goal. Break the down payment into 3%, 5%, 10%, and 20% levels, to help make the savings goal more achievable.

2. Try saving a specific amount of money every month. Instead of saying I want to save $6,000 a year it is easier to say I will save $500 a month. Smaller, more achievable milestones are always good motivators to savings.

3. Ask for help. If people ask what to give you a gift for your wedding, birthday etc. ask them to contribute to your home savings plan. Online sites like SmartyPig make it easy to get other people involved in your savings goals.

4. Create a visual goal graphic. Create a vision board or some kind of graphic that represents what you are saving for. It always helps to see what you are saving for and have a constant reminder.

Hopefully, you’ll be on your way to a new home in no time.