I have been a homeowner for 10 years. By far, my mortgage is my biggest monthly expense. However, even though I wish my mortgage were a wee bit lower, my husband and I were able to fork out a decent down payment for our house. Now that we have children, I'm glad we had the extra money to put down. Buying a house within your budget and having a down payment can help your lifestyle be more affordable.
Those $50 dinners and mani-pedis you give up will add a nice chunk of change to your savings, but you have to actually move the money from checking to savings so you don't end up spending it on something else! Here are some tips on how to save and make extra money for a down payment in your 20s.
Your Friday night escapades may be fun. However, how much are you spending on your girls night out or weekly dinner and a movie? Instead, try looking for free events in your community. Free concerts in the park or free movie screenings are two good bets.
When you go to the grocery store, try bringing a few coupons (for items you really need). Even saving $10 a week will help you save about $500 extra per year.
Bike to Work
We live about 10 minutes from my husband's work. We figured out that biking to work would save us $50 a month in gas. This is also a great way to get exercise, so guess what? You can also give up that costly gym membership.
Do you Really Need that?
Magazine subscriptions, expensive cable packages and weekly mani-pedis are nice but not necessary. Eliminating these extras from your budget can help you save money for a sizable down payment. In return, you will be less financially stressed in the future.
Skip the Gourmet Coffee
I like getting a fancy mocha as much as the next person. However, $3-$5 a day can add up to over $1,000 a year. Thus, ditch the fancy coffee and go for a modest cup of joe.
Get a Piggy Bank
Extra change and small bills can really add up. A canister or empty water jug will do. Each day, try to put some money in the jar.
Purge your Closets
Do you have any designer purses or clothing you could part with? Put your extras on a consignment site like eBay or Poshmark to get some quick cash. You can also sell clothing, jewelry and electronics online. You will have some extra money and your closets will be less cluttered.
When you are trying to save money, eating at home is one of the best ways. However, It's nice to go out sometimes. Some ways to save money are to go to happy hour. Along with cheaper drinks, there are also inexpensive appetizers. In addition, look for 'buy one get one free deals' in the mail and online.When you do all of these things together, you might be surprised how much money you can save.