Saving for a down payment requires quite a lot of you. You must be diligent, consistent, and even cut back on some of the luxuries you have in order to put some money away. Fortunately, saving for a down payment doesn’t have to be tricky and there are some creative ways to save for a down payment that you may not have otherwise thought about.
Putting that money away can feel hard at first, but as you grow more consistent with your system and see the results, you’ll be happy you did so!
Start a Dedicated Savings Account
If you don’t already have a savings account devoted to your down payment, then now is a great time to start one. Many online banks allow you to open a high-yield savings account in a matter of minutes and some will offer reasonable interest rates on your money. Enough at least to make you feel like you’re earning more than nothing!
This article has a nice listing of high-yield savings accounts and their current rates. Really, no matter what bank you go with, you’re doing yourself a big favor by opening a dedicated down payment account understanding that it’s for a specific purpose and nothing else. Additionally, if it’s removed from your normal bank, then you’ll be less likely to be tempted to use or move the money around.
Make it Automatic
One way that many savvy financiers suggest saving money and putting it away for retirement (among other things) is to make those savings contributions automatic. If you already created your dedicated savings account, then you’re well on your way!
Depending on how your bank structures automatic transfers may very well depend on how you choose to make your down payment contributions automatic. Regardless, find a way (and a bank) that will allow you to set up automatic transfers or bank drafts at regular intervals. You may want to set up a draft after each paycheck or set up multiple drafts throughout the month as you see fit.
No matter how you do it, make it automatic!
Get a Side Hustle
In a slightly different vein, a way you can creatively save for a down payment is to actually get a side hustle. From freelance writing to selling your old clothes on Poshmark, there are virtually endless ways you can turn a little talent or a few treasures into some real money for your home purchase.
If you don’t know where to start, then start as simply as possible. You don’t necessarily have to take up a second job to save some extra cash, although if it’s an option, help yourself! You can start simply by using websites such as Poshmark or eBay to sell your unused possessions and make a few extra bucks. Additionally, if you’re the creative type and have tangible skills, then consider finding some work on job boards such as Upwork.
Get Started Saving the Right Way
While the most important part of saving for a down payment is being consistent, sticking to a plan, and having some goals in mind, just getting started will get you going the right direction. Start small and work up to larger amounts, and don’t be tempted to peek at your balance over time. Give it a few months and see just how you well you’ve done!
Another way to get started on your home buying journey is to apply for a mortgage through Tidewater Mortgage Services, Inc. For over 20 years, Tidewater has helped buyers get the financing they need to get started with getting a home. Apply online and get pre-qualified in as little as 24 hours!