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Saving for Your Down Payment

By: Jorge Lopez, September 18, 2015

Regardless of the type of home you may be purchasing, unless you have the funds available to pay for it in full, you’ll need to make a down payment.  For first time homebuyers, this step can be very costly, and it often requires managing your other finances since it’s only part of the costs involved in the buying process.  The following steps can potentially steer you in the right direction in terms of helping you save when it comes time to purchase your first home.

When it comes to money, it’s tremendously easier to spend it than it is to save it, so try and make it less easy to get to.  You can achieve this in several ways: moving money from your checking to your savings account which you don’t have card access to or perhaps setting up a money market savings account with a high interest rate if you already have a fund set up in case of unforeseen emergencies.  Speaking of savings, you can also look into an automated account that will automatically transfer a certain amount you make each month into a savings account.  The idea here is you will feel less inclined to decide how much to put away.

Saving is imperative towards establishing a healthy financial future, but it shouldn’t necessarily be all about sticking to a strict saving routine.  If you want to spend on a fancy electronic device or a nice pair of shoes you happened to come across, do it if money allows.  What you then want to do is match that amount you just spent and put it into your savings.  You’re still getting your impulse purchase but you’re also making the effort to save at the same time.

These tips are only two of several different methods you can implement towards reaching your down payment savings goals.  Friends and family can also provide sources of guidance and encouragement in making sure you’re managing your finances wisely so you can eventually reach the objective of becoming a first-time homeowner.

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