How to Save Money for a House!

How to Save Money for a House!

By: Kyle James - Posted in:
couple starting to save for a home

Planning to buy a house? 10 Tips to Save Money for a House!

Are you planning to buy a house but don’t know where to begin? Financial security is the first step to owning a home. My wife and I recently began planning to buy a house! Obviously, we are no experts or we would already own a home. However, I figured I would share a few logical tips to save money for a house.

Save Money for a House Image

An immense amount of discipline is required in order to save for a house. Making money is a requirement of adulthood. However, saving money is something that few people are good at. In my opinion, it’s difficult to save money because of the stress that goes into making money. As a society, we believe working hard during the week is reason enough to spend a significant percentage of our money on the weekend. Everyone wants to believe they deserve to “treat themselves”. Yet and still, the guilt and financial sabotage attached to that idealistic phrase drive many people into poverty. Learning how to save money for a house is not rocket science, however, actually saving the money is extremely difficult!

As WealthHunters, we take pride in avoiding mental traps that cause poverty. About two years ago, I got tired of wasting money partying and “enjoying myself”. However, after taxes and the incredible cost of living in Los Angeles, I still had little to show for my sacrifice. Thus, my wife and I committed to making a change. We decided to commit to achieving financial freedom at nearly all costs. As a result, I developed ten tips to save money for a house to share with WealthHunters.

How to Save Money for a House:

1. Decrease or Eliminate Costly Recreational Activities!

Weigh the value of entertainment versus financial freedom with every purchase you make. Spending as little as $100 every weekend can cost more than $5,200 over the course of a year. Not only is that $5,200 that can’t be used for a downpayment, that money would compound in value when invested in a long term asset. Maybe cutting off all entertainment-based spending is impractical, but we can all increase our level of self-discipline and stick to a plan to create the life we really want. 

2. Eat At Home vs. Restaurants!

Eating at home doesn’t mean you have to sacrifice the quality of food you eat. We have millions of recipes at our fingertips every hour of the day. Take up a new cooking hobby and take pride in creating your own incredible meals and save money in the process. It’s easy to spend an extra $500-$1,000 every month eating at nice restaurants. While the experience can be enjoyable, is it worth not being able to buy your own property? 

3. Request More Hours at Your Current Job!

Before requesting more hours, increase your daily production and be on-time consistently. Then, strike when the iron is hot. Not only can you save more money to purchase a home, you also reduce the amount of free time and energy you have to spend your hard-earned money. Increasing productivity and decreasing free time is a logical means to earn more money and accomplish nearly any financial goals. Deep down we know we can always work harder.

4. Look for Cheaper Alternatives to Necessary Habits!

There is almost always another way to accomplish goals. You can get the end result without sacrificing your future. There are little decisions we make on a daily basis that grant us our immediate wish, but kill our long term goals. Even worse, these daily decisions form themselves as habit and prevent the attainment of one’s ultimate goal. Be willing to take a modified route in the short term to increase the likelihood that you’ll get where you ultimately want to go. For example, when you have the time, take the bus instead of an Uber. Make a pot of coffee at home instead of going to Starbucks. Eat PB&J instead of Filet Mignon. Heck, even cooking the filet at home can help save money. When starting your home buying adventure without inheritance or a massive amount of money in the bank, one must be willing to sacrifice the glitz and glamour in order to create their dream life. 

5. Don’t Buy New Clothes!

How we view ourselves is extremely important. It’s important to feel confident in yourself while hunting your dreams. One way many people attempt to increase their self confidence is buying new (and often expensive) clothing. While being well-kept, clean, and presentable is crucial, it’s not necessary to replenish your wardrobe every weekend or even every month. Most of your peers don’t honestly care what you’re wearing, and if they do, they have self-esteem issues themselves.

When you must go shopping, hunt for deals. Why not hold off nearly all year and hit those before and after holiday discounts. Purchase what you need to cast a good impression at work without breaking your bank account. 

6. End Unhealthy Habits that Cost Money!

While we have all have weak points, our self-discipline is key to going from broke to homeowner. Big business feeds man’s weak points and turns those with little self-discipline into lifelong consumers. Cigarettes and alcohol are just two habits that eat away at millions of American’s bank accounts.

Binging on sugar and caffeine are two other common daily habits for millions of people that not only affect health, they also affect the ability to purchase a home. Spending $5 everyday on coffee is grossly overpaying. Simply brewing coffee at home can save one a lot of money. Purchasing candy and other sweets is nearly always senseless. Not only does it negatively impact health and lack nutritional value, it’s wasted money. Replace these “mental crutch” activities with healthy alternatives like meditation.

7. Search for a Better Paying Job!

There is usually always a better job out there. You just have to have the tenacity and confidence to go get it! Most people stick with what makes them feel comfortable and secure even when it doesn’t allow them to create their dream life. Don’t be most people! Why settle for an average job and average life simply to remain comfortable? Ultimately, you’ll wind up living with regret. If you honestly believe there isn’t better opportunities for you, visit our entrepreneurship blog and see if we can’t help you create your own business!

8. Study Real Estate To Figure Out How You Can Save Money Purchasing A Home!

By developing an understanding of real estate in general and your local market, you’ll start developing an eye for great property deals. You might be able to purchase a home for less than you were expecting by learning how and where to shop for deals. What good is saving the money if you waste it on a bad investment? Take the time to read a few real estate books and learn the current real estate market.

9. Team Up!

Being in a relationship is a great way to save for a house without getting too bored. If you are single, create a mutually beneficial financial plan with your best friend! At the end of the day, finding someone to invest in real estate with cuts down the initial amount you’ll need for investment and also makes the process more fun. You’ll have a partner to plan with and bounce ideas off of. 

10. Create a Monthly Budget!

Calculate all of your expenses and your current income. Start looking for opportunities to cut unnecessary expenses out of your life beginning today. Write down a definite plan of action to save the amount of money you will need to purchase your dream home and calculate how long it would take you to save based on your current budget. After that, start to increase your vision and think of all the ways to increase your income and get their quicker. If you ever have any questions about budgeting let us know! We’re happy to help. Write down a monthly budget and live by it! Consider downsizing to increase your monthly profit!

The Sacrifice Required to Save for a House

Cutting expense is difficult to do over a long period of time, but it’s logical. Increasing your income is also logical- increase the amount of hours per day that you are focused on generating money. Even if that means reading a book to develop a new skill that can help you earn more.   

Money is the equivalent of energy. The longer you save it, the more pent-up energy you naturally want to release. As you see your bank account balance increases, the shiny things become more affordable and attractive. After busting your backside all week, it can be depressing to go home alone and practice these tips to save money for a house. Millions of millennials struggle with this same problem while planning to buy a house. Team up with someone on the same mission as you!

We live in a capitalistic society. If you are not inheriting a large amount of money, a tremendous sacrifice is required to become wealthy. Learning how to save money for a house is as much about discipline as it is about finance. It will be uncomfortable at times. In order to make the journey a little easier, I suggest teaming up with like-minded individuals that make it easier to save for a house. My wife and I always help each other out by correcting the temporary moments of flawed thinking or a lack of discipline. It is great having her there to remind me to “stick to the plan” when impulsive urges arise.

What’s your goal? Put your intention into the universe and tell us exactly what you want to accomplish in the comment box below? What type of home do you want to purchase and where? Let us know and we will be happy to help in any practical way! 

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