How To Save Money When You're Buying A Home

by Paul Valeri 12/03/2018

The factor that has the most impact on your home search is your finances. You’ll need to save a significant amount of money. It’s not easy to save when you have continuous monthly bills and responsibilities. Read on for tips on how to get your finances under control in order to save the amount of money it takes to buy a home.  


Do A Budget  



Once you have decided to buy a home, the first thing you should do is take a good look at your finances. A budget is critical when you buy a house because it tells you how much you’ll have to spend on your mortgage. Doing this ahead of time will allow you to maximize your income and make adjustments ahead of time as needed. Don’t forget that even though you’re buying a home, you still need some savings in addition to all of your other monthly expenses. Your budget should be outlined as follows:


  • Necessities
  • Monthly utility spending 
  • Insurance bills
  • Entertainment expenses
  • Grocery spending


Basically, you want to write down how much money is coming in and where all of the money is going. That’s a budget in a nutshell. See where you can cut back. What you’re left with is the amount you can save each month. You may want to do this on a percentage basis rather than a flat dollar amount. 


Get A Separate Account


The most straightforward things to do when you start saving for a home is to put all of your money for your house fund into a separate account. This way you can automatically transfer money in, and you’ll be less likely to spend any of the money if you don’t see it.


Sacrifice The Small Things


Can you take some hand me downs for your kids? Maybe you can start packing a lunch for work instead of buying lunch. Can you cut the cord on cable? It may be hard to sacrifice small luxuries, but these expenses can add up. If you cut these out of your budget, you’ll have a little more wiggle room to save for a home purchase. You’ll be surprised how much money you can save just by doing little things. Your morning latte is probably around $5. You could save at least $25 per week by merely making coffee at home! That’s a saving of over 1,200 per year!   


While saving for a home can seem overwhelming, if you take it in small chunks, you’ll be see the results of your efforts rather quickly. 


About the Author
Author

Paul Valeri

Put my record as the longest standing Certified Residential Specialist in all of Western Connecticut to work for you today. Licensed broker in CT since 1973, REALTOR Emeritus, I remain at your service, full-time and vital as ever, specializing in Fairfield and Litchfield county residential & serious commercial activity. My picture on the porch of my current home speaks to the fact that I, also, specialize in the design, sale, and construction of classic full log homes, carefully crafted out of specimen full logs originating from First Nation forests off the west coast of British Columbia. Scandinavian scribed, these full log homes are rarely, if ever, available in the eastern United States.

Paul Valeri: born In 1948, married, resides in Bridgewater, CT in their lodge of full log western red cedar. A graduate of the University of Notre Dame. Bronze Star decorated Vietnam Veteran. Owner-Broker of Paul Valeri, REALTORS since 1975. President of the Non-Profit Development Corp of Danbury since 1981. Founder of Danbury’s Vet House, home for ten previously homeless veterans. Canadian Board of Directors for the Miramichi Salmon Association, and founder of its First Cast MSA, a mentorship program that introduces new blood to Atlantic salmon fly fishing. Trustee with the Danbury Museum & Historical Society and its Moderator for The Hat City Ball.

Hobbies include mountain hiking, fly fishing, and playing golf (badly), walking preferred!