Cutting back on that daily latte, or happy hour with coworkers might help you save a few bucks, but if you’re saving for a down payment, you’ll need to make some larger lifestyle changes in order to help you save the fund you need. The market is improving, and with fixed mortgage payments, buying a home is slowing becoming even more affordable than renting in some area of the US. Here are a few tips you can implement to help you successfully save for your new home.
Automate your savings contributions. Contact your bank and auto-deposit a fixed amount into your savings every month. Most people can deposit 2% of their income without even noticing a significant difference, and it can accumulate a significant amount over time. Reduce your large expenses month to month. If you live in a two bedroom apartment, consider getting a roommate to cut your costs in half, or move to a cheaper area to reduce your monthly rent. Consider saving a large portion of your tax return. The average tax refund in 2014 was $3,116, and while it might be tempting to splurge and treat yourself, it might be beneficial to deposit a large chunk of that directly into your down payment savings. Making at least one or two of these changes could help you reach your savings goal, and for more information on the Seattle real estate market, contact your local real estate agent today!