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Writer's pictureAnnette Harris

Creative Ways To Save And Budget For A Home Purchase

a blue piggy bank next to a small house

Saving for a home can sometimes seem like a daunting task. Part of the preparation requires a planning strategy that can help keep you on track. Using creative ways to stay motivated and save can help you achieve your goal of homeownership faster. Here are a few key saving strategies and unique tips to save.


Setting Up A Budget


  1. Spend less than your monthly income. It's essential not to spend more than you earn monthly or rely on credit to help you pay your bills. Writing down your monthly income and expenses can reduce a negative monthly cash flow.

  2. Plan your monthly budget before the next month begins. Pre-planning your monthly budget by estimating your future expenses can help determine if you need to cut back on your current month's expenses. At least a week before the end of the month, ensure your monthly expenses are accounted for and record your expected income and expenses for the next month.

  3. Cut back on your expenses. If your monthly cash flow is negative, find ways to cut back on your monthly expenses. This could include cutting your cable bill, eating out less, or installing a programable thermostat in your home.

  4. Pay down debt. If you have a positive cash flow, save the surplus or pay down debt. A positive cash flow can help you save for emergencies, retirement, a needed car purchase, and even pay down debt.



Staying on Track


  1. Save automatically: Setting up your savings to automatically transfer to a savings account reduces the urge to spend the money when it's in your checking account.

  2. Set short-term goals: Most of us have long-term goals, but it takes a long time to achieve them. Setting short-term goals on the path to achieving long-term goals can keep you motivated to stay on track to goal attainment. At each checkpoint, you can reward yourself for achieving your goal. Rewards don't have to be expensive and can be as easy as taking a bubble bath.

  3. Have an accountability partner: Whether it's your significant other, a best friend, or a parent, tell someone about your budgeting goals. Your accountability partner can help keep you on track and remind you of the goals you set for yourself or your family.



Creative Budgeting Tips


  1. Do-It-Yourself Repairs: YouTube is one resource that can provide you with ways to fix your car, ceiling fan, and even your garbage disposal. YouTube is a free resource, and all you need is the time and effort to find the video that can guide your repairs. Purchasing the items required to make repairs and using YouTube experts as a resource can save you hundreds in labor costs.

  2. Bake or make gifts: Baking or making gifts are more valued and used than items purchased from the store, especially during the holiday season. A couple of hours of your time can yield pastries and crafts that can last a lifetime.

  3. Thrift Shopping: Most people clean out their closets as the seasons change. Shopping at the beginning of a season can help you discover some great finds for children and adults alike. Items at thrift stores can be found for pennies on the dollar and donated again, especially if you have growing children.


Using these savings and budgeting tips can help you achieve your dream of homeownership. There are also numerous other creative ways to save for homeownership. Leave a comment and share some of the ways you saved.

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