Saving for a down payment may seem difficult for all of you first time homebuyers out there. You’re thinking “I have to put at least a 5% down payment, so if I’m buying a house for $600,000, that’s $30,000. I can’t do that!” Don’t worry though, because saving is completely doable. With these tips, you can save that $30,000 in no time!
Brew vs. Buy
We’re not telling all of you jittery caffeine addicts that you have to quit coffee. However, we are telling you not to get your daily dose of caffeine from your local Timmies. Instead, opt for a $10 bag of ground coffee beans and brew some yourself. One bag makes around 60 cups of coffee – that’s about 16 cents a cup! Imagine how much you can save over time!
A Penny Saved is a Penny Earned
You may think that collecting coins in a jar is child’s play, but it really works. The rules are simple. Pay in bills and never in coins when you’re paying cash. As soon as you get home, deposit all the coins in your jar. It sounds crazy, but you can save a quite a bundle by doing this.
Have an out of Money Experience
You really don’t need to spend money to have a good time. How about inviting a few friends over for some Netflix, cheese, and wine? Instead of going out to restaurants all the time, have a potluck dinner party! If you just get a little creative, there’s a whole world of fun out there that doesn’t require burning a hole in your pocket.
Cents and Centsibility
There aren’t many things that you can dip into your RRSP for, but a down payment for your first home is fortunately one of them! You may withdraw up to $25,000 from your RRSP. If you are purchasing a home with another first time homebuyer, they can withdraw up to $25,000 as well. The only catch is that you are required to pay everything back within 15 years.
Budget, Plan, and Get Rich
The point of budgeting is to spend less than you earn. If you can do this, you can save! People generally respond better to a structured plan that they can follow. If you want to create a budget plan, there are countless apps that can help you do that. Creating long-term goals and writing up a sheet that helps you implement a spending strategy is one of the most important and helpful things you can do for yourself.
Saving for a down payment shouldn’t be a daunting and difficult task. You have options. Give us a call and we can help you figure out what those options are!
Have a wonderfully thrifty day!