There are plenty of reasons to buy your own home. Some of them are practical. In many places, mortgage costs are lower than rent. There are tax breaks associated with having a mortgage. A house can also be an excellent investment. However, many of the reasons are also emotional, and you may find yourself wanting to a buy a home even if it might not be the optimal financial decision.
It can be comforting to know that you are not reliant on the whim of a landlord. If you are a DIY type, you may long to have a place of your own that you can put your stamp on. One of the big barriers to homeownership is money, and having more money for a down payment can get you a better payment plan. Below are several ways to help you save for this down payment.
Make a Budget
This is the first, fundamental step. Making a budget nearly always means that you will find places where there is waste, and you can put this money toward a home instead. Even though you are probably enthusiastic about saving, you should make sure that you don’t cut your budget to the absolute minimum because this is too hard to stick to. A budget that you can live with allows slow and steady savings.
Sell Your Life Insurance Policy
You might actually not realize that you have some valuable items that you could sell, such as your life insurance policy. Both permanent and term coverage can be sold, and it only takes a few seconds to get an estimate of your policy’s value. If you are single and do not have dependents, this might be a particularly attractive option. On the other hand, if there is a family that depends on you and they would need the money from the policy if anything happened to you, you may want to look at selling other items.
Sell Other Items
You can make money selling clothing, furniture, books, cookware and more. Whether you want to put them online, have an old-fashioned yard sale or take them to a consignment or other shop that buys used items, this is a quick way to make some cash on things you weren’t using anyway—and you won’t have to move them to your new home.
Gig Work
Gig work can be a great way to pick up some extra money because unlike a part-time job, it requires little commitment. You can deliver food, give people rides, walk dogs, mow lawns or do any number of other things and put away everything that you make toward your down payment. You might be surprised at how fast this can add up.
Look for High-Interest Savings
You can turn the money that you’re making from all of the above suggestions into even more money if you can get paid interest on it. While many traditional savings accounts offer low interest rates, if you do not need access to your down payment money for a while, you might look into certificates of deposit and other vehicles that may give you higher rates and make you some money without having to do anything at all.
