Smart Ways to Save Money Quickly for a Down Payment on a Home

Housing prices are on the rise in many parts of the country. As prices rise, purchasing a home will become more and more difficult. If you’re hoping to buy your first house in the next few years, now is the time to increase the amount you’re saving each month. These tips will help.

Borrow from Family

If you’re trying to save money quickly, consider borrowing from family members. You can either set up a fair repayment plan, or, if you’re borrowing from close relatives who plan to leave you money upon their death, they may consider taking the money out of your inheritance.

Negotiate a Higher Salary and Lower Bills

Talk to your employer about getting a raise. Whatever money you get from the raise should go straight into your savings. Then, contact companies like your landlord/management company, auto insurance company, and phone company. If you’ve been a good tenant or customer, you may be able to negotiate a lower rate on your monthly bills. Put the extra money saved in savings every month.

Save First, Not Last

Many people save whatever money they have left at the end of the month; however, this can make it tempting to spend more and save less. Taking the money out of your bank account at the beginning of the month and putting it into a separate savings account, one that’s more difficult to tap into, will encourage you to stretch what’s left in your checking rather than take the money from savings.

Set up an automatic deduction to take money out of your paycheck at the beginning of each month. Talk to your banker about setting up a separate bank account that’s not directly linked to your checking.

Explore Other Options at Your Bank

In addition to setting up a savings account that’s not linked to your checking, your banker may be able to give you more smart advice regarding the way you save and spend. Talk to your banker about the following:

  • Refinancing your debts. If you have credit card debts and student loans, refinancing your debts into one loan from your bank with a lower interest rate can help you save hundreds of dollars every month.
  • Putting your money into a smart savings account. Money market accounts are designed to have progressively higher interest rates as money in the account grows. Talk to your banker about setting up a money market account, then consider putting deposits of money like your tax returns and year-end bonuses into the account to boost your interest rates quickly.

Banks are designed to help customers save money in the smartest way possible. Set up an appointment with your banker today to find out more about the best ways to save money quickly for a down payment on a home.