Saving up for a downpayment

Experts generally agree that being able to put a little money aside or save it is important. There are people who earn above-average incomes but who have no money.

Skipping the fancy coffee is’t going to add up to enough savings for a down payment on a house, it is going to take more than that.

Knowing where your money is being spent can help. Often it is the smaller monthly expenses that really add up.

A cell phone bill here and a streaming service there and some magazine subscriptions and maybe a membership that rarely gets used.

Go through monthly expenses at least once a year and see if any of the bills can be lowered or eliminated. Look for free trials that ended up being monthly bills.

It is possible to make savings a monthly expense by using auto-pay to transfer money from checking to savings each month before it all gets spent. Based on the idea of paying yourself first.

The word budget sounds boring but it is easier than ever thanks to electronic banking. I like to categorize expenses so I can easily see how much is being spent on utilities or restaurants.

Cooking at home can save a lot of money. When my daughter was a starving graduate student she used to do most of her cooking for the week on Sunday afternoons because she didn’t always have time to cook.

Bringing lunch to work can be a significant saving over dining out each day.

Buying a house does not require a 20% downpayment but in most cases, homebuyers will need cash. For those who already own a home sometimes things break.

People who want to buy a house in 2021 should start saving today.

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