When people tell me that they want to buy a home, I immediately ask them do you have enough down payment. How much is enough to buy a home? Actually even 5% down would be more than enough but the less you put down, the greater the probability of being underwater (owing more than the value of the house) at some point. It is always recommended to put atleast 20% down payment on your big purchase. It may be a big task to save up 20 percent of the purchase price of a home. Consider these simple ways to make it easier recommended even for single men or women.
- Set up an automatic, recurring transfer from your checking account to a savings account. If you never see the money, you won’t spend it.
- Limit eating out and cook at home and avoid too much clothes shopping.
- Switch from pay services to free ones, and save the difference. For instance, ditch the gym membership for running and biking trails. Cancel cable and instead watch free television online or borrow from the library.
- Sell old clothes, books, music and belongings that you no longer use. Have a rummage sale or sell them online. As a bonus, you’ll have less stuff to pack and move.
- Negotiate better rates for services such as insurance, banking and your phone bill. You never know what you can get unless you ask!
- Take a second job or start a side-business. If you tutor kids in the evenings or walk dogs, all that money can go into your house fund.
- Live with your relatives—just for a while. Make sure it’s limited, and invite them to your housewarming party when you move.
Some content: usatoday.com