8 Tips to Help You Save Up for a Down Payment
By far, the biggest hurdle to purchasing a home in NYC for most people is the down payment. In many instances, it can be a six figure undertaking. That’s a tough feat to accomplish, but it’s certainly not impossible, especially if you follow some of the tips below.
Set up a budget and figure out where you can cut costs and divert your cost savings to your down payment.
Set up automatic savings transfers and consider enrolling in banking programs which round up purchases to the nearest dollar and deposits the change into your savings account. You’d be amazed at how much you can save within a year!
Check your interest rates on credit cards and student loans to see if you’re truly getting the best rate. If not, see what you can do to lower it. Again, you can divert any cost savings towards your down payment.
Got a big tax refund, a sizeable bonus or cash gifts from your wedding? Put most (if not all of it) aside.
If you have a time horizon of anywhere from two to seven years, consider whether or not bonds or CDs could offer a better rate of return versus a traditional savings account.
Consider signing up for a cash back rewards credit card. You can put the cash rebates into savings, rather than spending it. But be careful – you don’t want to have too many open lines of revolving credit, so use this option wisely!
If you have the time (and the energy), consider creating a second stream of income. Sell things on eBay, Etsy or Amazon, or perhaps offer freelance services.
If you’re currently living solo, you might want to consider getting a roommate. It’s certainly not the most glamorous of options, but doing so could potentially save you thousands of dollars a year.
Have more questions about what it takes to get ready to buy a home? Then feel to reach out to me. I’m always happy to help!