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Skip the Coffee and Burgers to Save for Your New Home

July 21, 2011

More than a quarter of all homebuyers this year will be first time buyers. One of the things almost all of these buyers have in common is preparing for their first investment in a new home including saving money for that intimidating down payment. Whether you are a newlywed, have a growing family or looking forward to retirement, preparing financially for a new home is important. Preparation for your down payment can be a challenge. SPENDING money is easy! So many choices for shopping, entertainment and dining and spending money is effortless with debit cards and credit cards. Even though saving money is not an easy thing to do, it is the important first step in preparing for a brand new home. If you are a renter, you probably are more and more interested in buying a new home – every time you give your rental check to your landlord. Home ownership is still the American Dream and the benefits owning a new home are obvious: tax deductions, equity building, lower utility bills, more privacy. You just have to figure out how to make a few sacrifices to save for a down payment. Where will the money come from? Where will you find your down payment and all those other new home expenses? Sometimes this may seem a little daunting, but the money may be easier to find than you think. We all can find extra money in small ways. If you arrive at work every morning with a cup of coffee from your favorite coffee shops, how much does that put you back? Let’s say you love a good latte – that’s $4. Multiply that by five days a week, and you’ve consumed $1,040 worth of caffeine in one year. If your significant other does the same thing, together you’re spending almost $2,100 on hot beverages. Consider the alternatives: invest in a coffee pot and make your own at home, satisfy your super caffeine addiction only two days a week or find a convenience store that sells the stuff at a quarter of the price. What do you eat for lunch every day? Restaurant meals –even the fast food ones - take a big bite out of your pocketbook. Let’s say you spend $10 a day. Over 12 months, those lunches eat up $2,600. If your significant other eats restaurant meals daily as well, the two of you rack up $5,200 in restaurant expenses each year. The alternatives: brown-bag it! Even Donald Trump doesn’t go out to lunch! Just that small amount goes a long way toward your 3.5% FHA down payment requirement. These are just a couple of quick tips to get you started thinking about planning for your new home. The most important thing to remember is that you must have a goal, devise a plan and stick to it. Set a budget and watch how your down payment fund grows. Your investment in a new Grant home is well worth a few skipped lattes and a fewer unhealthy lunches – you may even lose a little weight on the way to becoming a proud new home owner! Got questions? Visit any Grant & Company model home and speak with one of our New Home Information Specialists!