There are a number of things that signal true adulthood: having monthly bills under your name, the ability to rent a car without additional fees, needing a weekly (if not daily) nap, and, of course, buying a home. While it may seem like a daunting feat, home ownership is quite possible with a savings plan.
Here are five tips to manage your finances and save up for your dream home.
Create a monthly budget and stick to it
When it comes to spending, it’s important to live below your means, especially when saving for something as big as a house. Create a list of your monthly expenses and set up automatic payments for bills. Then set aside a budget for food, transportation, entertainment, and savings so you know exactly how much you’re allowed to spend each month.
Whether you live in a cheaper or smaller apartment across town or leave behind a fancy yoga studio membership, downsize before you upsize. Think “less is more” as you cut back on expenses to save for your dream home.
Use cash only
One trick in spending less is setting aside cash to avoid swiping your card everywhere you go. When you have a physical amount of cash in front of you, you’re less likely to overspend.
Make savings automatic
Set up your savings and checkings accounts so that each month, a fixed amount is sent to your savings via direct deposit. This way, you’re saving regularly without even thinking about it.
Cut the credit card debt
When you have debt, you don’t have true savings, so make sure you budget accordingly. Pay off your credit card debt each month to not only increase your credit score but to also effectively save for a house.
Do you have any tips on how to save up for a house? Weigh in on the comments below!
xx, The FabFitFun Team