Saving for the future? You’re definitely not alone. However, in order to make sure that you’re really going to hit all of your financial goals, you will want to start thinking about what you want to start with first and then work your way over to other goals.
For example, one of your big goals might be to actually own your own home. The truth is that you don’t want to just stick with assuming that it’s a dream that won’t come true. As hard as it sound at first, you can make that down payment — you just need a plan.
First and foremost, you will want to look at your budget. Two incomes are better than one, so if you and your partner can actually contribute money to this goal, then you really will hit your target a lot faster than if you were to just only have to deal with one income. This might mean that you have to get your partner on the same plan that you’re on. You can’t just assume that your partner will want to automatically do what you’re doing — even if they really want to own a home as well.
In order to make your dream come to life, you’re going to have to make sacrifices. You might want to get rid of expenses that are only holding you back. These days with the rise of the Internet, cable packages are almost completely unnecessary. Even show that were once closed off to people can be purchased online when you really can’t afford to miss an episode, and this means that it’s a lot cheaper to get your entertainment. However, there are also hundreds of thousands of interesting Internet media pieces waiting for you as well. YouTube is really only the tip of the iceberg — there’s a lot more from there.
Your tax refund can also help you save some money, because you won’t have to feel like there’s nothing to spend that big check on. You can put it away in the bank, or you can apply it towards an investment account. It might sound like the most boring thing in the world, but over time you will have built up a nice down payment.
How much down payment should you save? At least 20% of the value of the home. However, the more money that you can save, the better terms you’ll be able to acquire. That’s because you’re having to borrow a lot less money, and you can use the liquid cash as a bargaining tool later down the line.
Overall, it can seem tough to build that down payment savings plan. However when you really start looking at all of the places where you can push money into the pile, you’ll find that your money will definitely grow over time. Get out there and get started today in order to get into the house of your dreams later — you can do it!