Saving is a Stepping Stone to Home Ownership

A lot of the people I talk to that dream of owning their own home are dealing with set-backs. Maybe they've lost their job, their marriage or a loved one. Maybe they've made bad decisions and are learning to make better ones. Sometimes they just don't make that much money and think that means they'll have to rent forever. I'm here to tell you that regardless of your situation YOU CAN OWN A HOME YOU LOVE! That doesn't mean I can just magically make that happen for you. But it does mean that you can take steps right now that will get you ready for the home you've been longing to have. In this blogpost I'm going to focus on ways to save money for a downpayment.

1. Put your tax return in a savings account and leave it alone. Do this with any big chunk of money you get. Put it in your savings account and do your best to forget it exists.
2. Ask your family for help with the downpayment. You might be surprised! Grandpa might be just waiting for a good opportunity to show his love and support to you.  If you have a little money set by already, show that to your family. They may be more willing to help when they see that you're making the extra effort yourself.
3. Look for "lost" money. I'm always being surprised at the places people stash their money and forget about. Look for old savings bonds, coin collections, gold jewelry, or lapsed savings accounts. You might also be able to take a loan against an insurance policy.
4. Take a second job. It's not glamorous, but you know that every cent you earn can go toward your downpayment. 
5. Clean out your closets and sell your extra stuff. Have a yard sale, advertise in the paper or better yet on Craigslist. If you've got collectibles, try selling on Ebay--then put the money in your house fund.
6. Ask your boss for a raise and put the additional money in your downpayment fund.
7. Set up automatic transfers to your savings account. Do you have automatic deposit on your paycheck? You can do the same thing with your savings account. Talk to your bank about automatically moving a set amount of money from your checking account to your savings the day after you get paid.
8. Pay off your credit cards! They are financial bloodsuckers! The longer they sit, the more you pay in interest, so pay them off so you can get on with saving.
9. Create a specific downpayment savings account. If your home downpayment fund is in the same place as the rest of your savings, you'll be likely to raid it when things are tight. Create an account specifically for your house fund and try and forget it exists.
10. Cut back now for gains later. Maybe you're renting a bigger house than you need or spend a lot of money eating out. Look at where you put your money now and see where you can cut back and put that savings into your downpayment fund.

Now go ahead!  Choose at least one of these things and take action on it.  You'll be happy when you see the results!