There are few things as painful to me as trying to save money. It does not come natural to me, I am not a “saver” by nature. It was not engrained into me as a child, so it has always been a little difficult for me. As an adult, you kind of have to learn how to save regardless if it is easy or not. Here are a few painless ways I have found to be able to save money. A few months of using these tips and you could easily save enough money for a down payment on your first home.
1.) Auto Deposit Money into A Separate Savings Account
This is probably the simplest way to save money for your downpayment. Set up reoccurring deposits from your checking account into a separate savings account every time you get paid. It is very simple to do, most banks allow you to create these reoccurring deposits online. Almost all banks offer this service. If you have any questions, contact your bank and they should be able to help you set it up. For example, if you are paid weekly on Fridays, set up an auto transfer into your separate savings account every Friday for a set dollar amount. Start with something small, like $5 per week. Then see how quickly that money starts to add up after only a few weeks. Then, slowly increase your amount as your budget, needs allow it. I love this method because it truly is – Set it and Forget it. That’s the kind of saving I like to do, the mindless kind.
2.) Use a Round-Up App
Round-Up apps have been gaining a lot of popularity in the past few years. Popular round-up apps include: Acorns, Chime and Qapital. The concept of a round-up app is that anytime you make a purchase with your debit or credit card, the app rounds up your total to the nearest dollar. The rounded up change is then deposited into an investment account or savings account for you. If you are able to round up all your purchases, you will quickly save money without thinking about it. You won’t believe how quickly your spare change adds up! After only a few months of this, you will be able to have a good chunk saved.
3.) Cancel Expensive Cable
I know, you probably hate me for even suggesting this! It is now 2020, we live in a world where standard cable TV is becoming a thing of the past. With affordable streaming services like Netflix, Hulu or Amazon Prime, there isn’t a need to have such an expensive cable service that you probably only watch 10 channels on. I am a TV watcher! I love TV! I never in a million years thought I would be someone without a cable bill – BUT I AM! After stepping back from my full-time job to stay home with my kids and work full time in real estate, I didn’t have a choice. We cut out cable as a necessity. We didn’t have the $180 per month we were spending on TV. Since we cut the cord, I will never go back! If you are able to cancel your cable bill and add a much more affordable streaming service, you can deposit the difference into your savings every month. If you go from $180 (like I did) to $25 per month for TV, you can save $155 per month toward your home purchase downpayment!
4.) Sell your Junk
We all have a basement, attic, or garage filled with stuff we haven’t touched in years. If you were able to sell useless stuff that’s been sitting around for years, this could get you one step closer to home ownership! Start simple, find 10 items you haven’t used in the past 12 months, and post it for sale. There are so many ways to sell your old stuff now, there is no excuse not to do it. Craigslist, Facebook Market Place, eBay, Offer Up, the list goes on and on. Once you sell those items, save the money in a jar or immediately put it in your savings account. Do NOT put the money in your wallet, you will spend it! After you sell those 10 items, find 10 more. Keep going until you reach your savings goal!
5.) Use a Cash Back App when Shopping
You have to shop anyways, you might as well get paid for it! There are 2 main cash back apps – Rakuten (formally ebates) and Ibotta. It’s pretty awesome how these apps work. They receive get a kick back from big retailers and they share those profits with their consumers, you! Both apps are free to sign up for and easy to use. They can be used for in-store shopping or online shopping. Once you receive your cash-back check from your shopping, deposit that directly into your savings account.
If you follow these simple and painless tips to save money, you will be purchasing your new home in no time! If you ever have questions about Real Estate, send me an email. I am always happy to help!
