The perks of being a renter, no mortgage, no property taxes, no annoying maintenance work or repairs. This matter you can just leave to your landlord to handled and you need not to worry anything of it. Sounds good right?
However, don’t forget the big drawback of being a renter –> You are not actually owning a home.
So what’s the matter that stopping you from buying a home for yourself? If you are like most renters out there, it’s the lack of cash for a downpayment.
According to the research, one in five Americans does not event have a saving account; one-third of those who do have a zero balance in their account.
Well, the good news is, there are some simple ways to start saving down payment for purchase a home. Make these moves to build your down payment fund.
1.Set A Goal
Figure out how much house you can afford is main key as it allows you to determine how much you will need to pay for a downpayment. Then draw out a detailed savings plan for yourself.
A research shows a people who set specific savings goals do a better job than those who don’t.
2. Control Your Spending Habits
Do look at your bank or credit card statement from last 2 months to see where your money goes, then identify which areas that you can cut back.
3. Downgrade To A Smaller Cheaper Apartment
It is depend on where you live, change from a one-bedroom apartment to a studio definitely can help you save thousands of dollars each year in rent.
Shrinking your living space can lower your electricity bill as well.
4. Search For Second Income
This advice would never outdated, but now it’s easier for you to pick up a part-time job such as Uber. food delivery service etc. This is the fastest ways to save a downpayment.
5. Get A Cash Rewards Credit Card
Be wise at choosing a credit card, a card with great cash-back rewards is definitely better than no-frills credit card. The credit card expert said American Express Card is always recommended.
Note: Normally a rewards credit card have higher interest rates, so make sure you pay off the balance in full and on time.