Of all the homes you’ll ever own in your life, securing the funds for the first one will probably be the hardest. But holding your first home’s keys is pretty amazing, and it is worth going through all the hardships to achieve it. With that in mind, here are some creative ways to save money for your first home.
Enlarge your income by adding a side gig
Buying a home involves many expected and unexpected costs you’ll need to prepare for. It would be great if you managed somehow to increase your income. Many people opt for getting a side hustle to save more than their day job is enabling them to. Explore the following ideas as they may improve your account balance.
Sell your second-hand stuff
In today’s consumption-oriented society, one accumulates a lot of items over time and needs to get rid of some of them occasionally. Most decide to throw them away or donate them. Although the latter is very noble and recommendable, in the situation where you are working on your savings, consider a third option – selling. There are multiple websites people use as modern yard sale sites where they can sell and buy second-hand things. The experts from zippyshellphl.com say many people that rent storage units to store old belongings they later sell and make money that way. They advise people to consider this option as it can benefit their finances.
Become a freelancer
The online job market is booming. You can find a freelancer job with some out-of-the-box thinking and a thorough search. These jobs have pretty high potential, and with some luck, you can earn more money than on your regular job.
Turn your hobby into a money-making machine
Your hobby can be more than just a fun activity you do in your free time. For example, if you like photography, you can offer your photos to one of the sites that sell them. Those that can sing can start a YouTube channel and create song covers. That can potentially translate into thousands of subscribers, generating money for you. If your hobby is making creative items, you could try to sell them. Whatever it is you’re doing for fun, try and convert it into a money-making machine if it is at all possible.
Do some of the teen jobs, although you’re not a teen anymore
The easiest way to earn some extra cash is to resort to the teen gigs such as babysitting or house sitting, dog walking, lawn mowing, and all other little chores that others will pay you to perform for them. Compared to the previous ideas it is less complicated and earns a bit less but it is easy.
Reduce your expenses to save money for your first home
For the maximum effect of your saving, try to reduce your expenses. The best way to do that is to make a spending program and not deviate from it. That program should address all areas of your spending. For example, you probably have a moving budget if you are moving. So, have a plan and stick to it so you don’t end up going over that budget. Your birthday party should be on a budget too. It would be best if you never deviated from your plans when it comes to spending, and all will go well. Here are a few more ideas on how to reduce your expenses.
Don’t let filing for the tax credit slip your mind
In an attempt to increase income and reduce expenses, one may get a bit lost and forget some of the critical money-saving activities. One of them is filing for tax exemptions. In 2021 the U.S. government introduced the reimagined 2008 first-time homebuyers tax credit program. People buying a house as their first-ever property are eligible for a tax credit, saving a lot of money they would otherwise spend on paying a tax bill. All you need to do is file your tax form with an additional IRS one, and you will receive up to $15,000 for these purposes. Even though you will have to buy a home first for this government perk to apply to your case, it is still a mechanism for reducing expenses. If you are eligible for such a benefit, you can count on this money to be used on your first home furniture, and therefore it is worth mentioning here and in your budget-increasing strategies.
Make your shopping a strictly controlled activity
People that are successful in saving money are very mindful about shopping. They never enter a store without a very precise idea of what they will buy and how much that will cost. This kind of control over your shopping behavior is the only way to have your finances in check. Here are a few helpful tips about that:
Cook more, eat out less
Not only is homemade food healthier, but it is cheaper in comparison to eating out. If you are serious about saving money for your first property, try cooking more and going to restaurants less. You won’t regret it.
Watch your energy consumption around the house
A lot of your money goes into paying utility bills which depend to a large extent on your behavior. If you were more mindful of energy consumption, you could reduce them. Getting your home to be more eco-friendly could significantly impact your electricity bills. You’d need less heating and less cooling as eco-friendly homes tend to preserve inner temperature longer. It is a long-term investment that would provide for a long-term increase in your savings.
To save money for your first home, you’ll need to be patient, well-organized, and hard-working, but it’s possible. With these creative ways to increase your income and decrease the amount of money that you spend, you can make the dream of owning a home come true even sooner than you originally thought possible.
Patricia Anderson is a financial advisor that has been working in the real estate industry for 9 years. She is also a devoted wife and a mother of three, which has made her especially keen on helping families manage to purchase a home. Her tips related to saving money and investing it wisely have helped a lot of people achieve their goals in life.