6 Ways to Save Money to Buy a House With Low Income in 2022 (VIDEO)
Most people want to save for their dream home but are unsure of whether they can afford to save up for that initial down payment. Keep in mind that it is possible as long as you follow these 6 steps in saving up your money. And within only a matter of months, you will be moving into the home of your dreams.
1. Look at Prices of Homes in Different Areas
The first step is to determine your affordability and search for homes in your desired areas, can you bring you to the realization that it will take a long time to save for that 20% down payment. Browse homes in lower-cost areas as well, and keep your options open.
“Buying a lower-cost home means you won’t have to save as long for the down payment”
and down the line, you use the equity you’ve built to buy a more expensive home later down the road.
2. Keeping Your Priorities Straight
Keep in mind, that rent is your first priority. And paying off your credit card debt will also enable you to have more available credit on your card, “improve your debt-to-income ratio, and creates a financial cushion that you may need for unexpected costs.” Also, be sure to check your credit score online at credit.com and keep a payment system for paying off creditors. Lowering your credit score, will give you higher credibility and help you finance your home at a lower interest rate.
3. Creating a Budget
Making a budget based on your income and your expenses will help determine how much you are able to save each month. Save as though you are paying a bill each month and transfer the money into a savings account. This easy online tool lets you plug in common expenses to see how they can help you reach your goal
4. Establishing a Higher Income
Creating income opportunities during your spare time will help you save in a shorter amount of time. Do something you enjoy or take pride in and make money doing it, or even do side chores, such as yard work or drive your car with Uber/ Lyft. There are many options of your choice.
5. Tracking Your Expenses
Be disciplined about those daily habits, of going out to eat, ordering coffee, and “get on track to saving as much as possible as quickly as possible.”
6. Reducing Monthly Household Expenses
This can help build your savings more quickly. Save on your electricity bill by “washing clothes in cold water” can save up to “90% of the energy expended in the washing cycle” notes Gallegos.
He also notes, skips the dryer, and eliminates emitting carbon emissions as well saving a few extra bucks on your next bill. Turn down the water heater to 120 degrees can save you “anywhere from $36-$61 annually in standby heat losses and more than $400 in demand losses.”