Start The Summer Savings! 5 Tips To Help You Save For Your Dream Home

Dated: July 25 2022

Views: 32

O'Brien Realty Summer Savings, piggy bank and home compared in a person's hands

By O’Brien Realty  

Saving up for a home in this summer of high inflation? Here are 5 tips to get you started! 

This summer is heating up, and unfortunately so is the inflation rate. With your expenses going up, how can you continue to save for a home? Don’t worry, there are still plenty of ways to save up for your dream home. (No, I’m not talking about skipping your morning coffee or getting a second job) Here are 5 practical, yet effective ways to start saving for your dream home today. 

1.) Save Safely 

Saving money for a home is important, but where you save it matters. There are many different investment options and each brings their own pros and cons. But when it comes to saving for a home, high interest savings accounts and Certificate Of Deposit (CD) are the best options. 

Investing your money in things like the stock market or cryptocurrency may sound like a good idea, but they are too risky for these short-term savings (under 10 years).

Shop around to find a savings account with the highest interest rate and set that money aside specifically for your future home. A CD might be an even better option, since you can’t touch the money until it is fully matured. Start safely saving and watch your home fund grow in no time! 

2.) Try An App!

Yes, there’s an app for that! Your home savings plan doesn’t have to be a complicated spreadsheet, start saving directly on your phone. There are many different budgeting and savings apps out there to help you reach your goal of home ownership. Here are two to get you started: 

  • Mint 

    • Mint is one of the top budgeting apps, combining all aspects of your finances in one place. You can track bills and subscriptions, check your credit score, monitor your income and investments and more! You can easily set up a savings plan, see where your income is going, and start saving for your dream home! 

  • Digit

    • Digit helps you track your daily spending habits and their impacts on your bank account. It then suggests what you should be saving and spending. A big plus of this app is that it lets you set up a specific goal, like saving for a down payment, and work towards it. (more on that next)

 

3.) Set Specific Goals & Track Your Progress

“Saving for your dream home” doesn’t sound nearly as easy as “saving a couple thousand for closing and moving costs”. Breaking down your goal (dream home ownership) into smaller goals (save a few thousand for closing costs) will make it easier to save the money, and keep you motivated throughout the process. Consider saving up for home buying costs such as the down payment, closing costs, remodeling and moving costs. 

Want to know more about what these costs could look like for your dream home?- Contact a lender today!

4.) Get Creative With Your Spending 

Even though you are actively saving money, you will still have expenses. But reevaluating them might help find some better deals and cut some unnecessary costs. Try some of these methods:

  1. Explore Your Options 

Take a look at some different plans for car insurance, cable, internet and cell phone plan bills. Shopping around might help you uncover some additional perks or cheaper plans to help you step up your home savings plan. 

  1. Refinancing 

Now might be the time to refi. It might be worth taking a look at your current student loans or car payment plans to see if you might be able to adjust your payments and save some more money. Recently, there have been some changes to student loan repayment and forgiveness programs, and more might be underway.

  1. Cancel Unnecessary Subscriptions

Sure, paying for a few different streaming services each month seems like minor expenses, but they can add up quickly. Consider putting that money into your home fund instead! Don’t have that many subscriptions? Try unsubscribing from a few promotional emails. Doing so will help eliminate impulse buys that come from just browsing the sales. 

5.) Save Any Increases

Any additional income increase or other financial gains can bring a major boost to your home savings! Tax refunds, bonuses, raises and other gains are all money that can put you ahead of your current home buying plan. Putting this money into your home savings fund rather than spending it on impulse buys will insure that your dream home is within sight. 

It is more important now than ever to save up to buy a home. Yes, the increasing inflation may make it harder, but owning a home will actually help protect you (and your bank account) from upcoming economic changes. While some are “waiting out” these challenges, it could end up costing you Get started saving today! 

Still have some financial questions?- Talk to a lender!

Ready to start your home search?- Start looking for homes in Southern Maryland here. Or talk to your O’Brien Realty agent to start your search process.

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