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Power-save your way to a down payment
Part 2 of 2 to read Part 1, click here.
5. Dial down your vacations.
New York is out. Maybe Buffalo. For West coast, maybe Seattle instead of Hawaii. Use sites like Airbnb (aribnb.ca) to find cheap accommodations instead of staying in a pricey hotel. Or stay home and use some of the money you saved on hotels to try some nice restaurants in your town. This is a good practice for when you own a home and find that fancy vacations are unaffordable with out going into debt.
Summer vacation somewhere in the U.S.: $2500
Minus cost of a Staycation: $ 500
One-year savings: $2000
6. Put a $100 price limit or less on birthday presents
Extravagant presents are fun to both give and receive. But they're a luxury for people who are more financially settled than someone who is madly saving for a house down payment.
Yearly cost for a couple of buying presents for various occasions: $1000
Minus using the $100 present limit: $ 500
One-year savings: $ 500
7. Cut your cable, TV and landline.
Almost like heat and electricity, an Internet connection is essential. But a home phone is dispensable if you have a smartphone, and cable TV can be replaced with Netflix, watching shows online and using HDTV antenna. Also, try buying up DVDs of movies and TV shows seasons at a garage sale, or find a store that sells used DVDs, CDs and videogames.
Yearly cost of cable and home phone: $1200
Minus approximate cost of a Netflix subscription: $ 110
One-year savings: $1090
8. Halve your spending at Restaurants and Bars.
Studies of Generation Y spending habits show that going out to eat and drink is big. Hey, everyone needs a hobby. But this one is too expensive for people who are set on buying a house. Aim to eat out less often, and rather that pay marked-up restaurant or bar tabs, grab some leftovers and a beer from the fridge.
Annual cost of spending $250 monthly: $3000
Minus half the annual cost: $1500
One-year savings: $1500
And one more thought: Ask for a raise at work!
The total savings per year from this week (6-8) is $5090 and last week (1-4) $13,750 for a total per year of over $18,840. That is a 5% down payment on a $376,000 home!
If you have any questions about saving for your downpayment or anything else related to mortgages please call 250 862 1806 or email me at [email protected].
More The Mortgage Gal articles
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