Renting has its perks. The majority of your problems are taken care of by your landlord, and you don’t have to worry about a mortgage. However, despite that only one in ten renters prefer renting according to a survey done by Wells Fargo. The other nine would much rather own their homes but find themselves stuck by two words: down payment.
As you may already know, in order to purchase a home, you have to pay some money upfront before acquiring your mortgage and it is this very down payment that stands between so many potential buyers finally purchasing their home. Most Americans struggle with saving extra money for a rainy day or a down payment for a major purchase. Here are six sure-fire ways to increase your down payment savings while you rent to achieve your goal of owning a home.
1. Find Alternative Ways to Commute
Whether it’s from your favorite coffee shop or to the office, getting to and from your daily destinations is be very pricey. According to the Bureau of Labor Statistics yearly on average we spend $9000 on transportation alone. That being said, maybe it’s time to cut back on filling up the gas tank and opt for more wallet friendly means of transportation such as the bus, a bicycle, carpooling with co-workers or even a good old fashion walk. You’d be surprised at how much you can save by not using your car day in and day out.
2. Cut Back on Cellphone Costs
In a society where we are so dependent on our smartphones to keep up with tasks, emails, and phone calls from work this one may take a little bit of will power. Cutting back on your cellphone costs will be a great way to save towards your future home. Little do we know all those data plans, unlimited talk and text deals from major carriers add up a great deal. However, you can fine deals just as good from lesser known companies allowing you to save up to $35 a month for your down payment.
3. A Side Job Never Hurt Anybody
The idea of working another job on top of the one you already have probably doesn’t sound to appealing, however, it is not as grueling as it sounds. There are a plethora of easy side jobs that you can combine with your actual occupation. Gigs such as freelancing, tutoring, house-sitting and many other online jobs are a fast and easy way to make a couple extra hundred dollars a week to stow away into your savings account. Figuring out what your good out can serve as a great way to generate revenue.
4. Sacrifice Your Vices
We’re all a little guilty of splurging on things that we shouldn’t, whether it’s eating out, daily Starbucks fix or any other guilty pleasure of ours that we spend money on. It’s time to face the facts – if you want to make some progress saving for that down payment, you’re going to have to learn how to live without those things that make your wallet weak at the knees. Cutting back on all the extras can save you not only hundreds but thousands of dollars, so maybe think twice about if you need a glass of wine for dinner…I’m sure water will be just fine and benefit your savings.
5. Share Your Space, Boost Your Down Payment Savings
Getting a roommate is one sure fire way to get some extra cash into your savings account. Renting out the rooms of your apartment to other people is sacrificing extra privacy but the difference it makes to achieving your goal of financing a home is tremendous.
Another option is registering your apartment on housing sites such as Airbnb.com. If you often travel for work or are out of your home for periods at a time, then this is a great way to make money. This service allows for people traveling into your city an alternative to hotels by renting out your space. Airbnb does take a small percentage of all arrangements; however this option has proved to be rather efficient.
6. Move Back in with Your Parents
It may seem like a giant leap backward, however, moving back home with your parents gives you the chance to save all the money you put towards rent straight into your savings account. Negotiate with them and see if your childhood bedroom is still available, just until you have enough money saved to get your home.