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How to save for a real estate down payment

southernrealtyincArticle written by western homes

Saving is important if you are looking at buying your own home. With most homes hovering around $250,000, future home buyers will need to save $40,000 or more to buy their own home. Here are some tips on how to save for a real estate down payment.

Prioritize it – It is important that you analyze every purchase before you pull out your wallet to spend. This includes both large purchases and small purchases.

Automate it – Open a separate savings account and automate saving deposits from your paycheck or checking account every month. You can start with a small sum and then slowly increase the amount as you get more comfortable with the how much you have to spend.

Make it a game – If you have a friend or family member who is also saving for a down payment, you could make it a game and see how much each family raises.

Set aside unexpected money – If you receive money from a parent or friend as a gift, set it aside for your down payment.

Build a side business – If you work 40-50 hours a week, you have plenty of time to freelance. Look at tasks that can be done from home like writing, babysitting or mowing your neighbor’s lawns.

The budget for it – Start budgeting for your expenses in an excel sheet. This will give you a good idea where your money is going and where you can reduce your spending.