5 Tips First Time Homebuyers Can Use to Save for a Down Payment

  1. Count your pennies. Knowing where the money actually goes is a big step to realizing how to save and where to cut corners. Is Starbucks really the culprit? You can even use a site like mint.com to track your expenses for you. Who knows, you may be surprised at the results.
  2. The Big Wedding. Every little girl may dream of that big white dress and fantasy wedding, but she also has aspirations of buying her first home with her new partner. Are you willing to downsize your wedding to get into your first home sooner? If any family members were contributing to the wedding fund, talk to them about a house fund instead.
  3. Back to work we go. Taking on a second job is never fun, especially when you worked so hard to get a good paying, first job. However, the paycheck from another job can multiple in your bank account quickly, getting you that much closer to your down payment goals each week.
  4. eBay your unwanted stuff. Sure, it is kind of a pain to sell on eBay, but it does net you cold, hard cash to put towards your savings. Purge your belongings and get rid of anything you haven’t used in six months or more. Not only will you get a jump start on your savings, but you will have less to move when the time comes. You could even hunt for items that sell well on eBay at garage sales and thrift shops for a greater profit.
  5. Get a Roommate. Rent is expensive. If you can split your rent with a roommate, even for a short time, you can save the difference each month. Another option that may be available is to move home temporarily. Living rent free, even for six months, allows you to save a large chunk of money each and every month towards a down payment on your first house.