4 Easy Ways to Save for a New Home

Nothing is more frustrating than when you have to dip into your savings for an emergency or some other reason, causing your savings account decrease…or empty completely! It feels defeating. You think to yourself, “How will I ever manage to save up that amount of money again?” or “Why did I just use the money that was supposed to go towards my down payment?”. Sometimes life throws us curve balls causing us to use resources or money that we had set aside for something else. The good news is, you can save that money again! With a little dedication and maybe a different approach to saving, we are going to show you some clever ways to save money that you may have not considered before now.

Make it a Challenge!

Most people have a competitive nature inside, some obviously are more serious about it than others, therefore turning the mundane act of saving into a challenge changes your outlook. One savings challenge that is the most simple in terms of strategy is the 52-week savings challenge. We recommend starting the first week of the new year as it can get a little confusing if you start mid-year. For this challenge all you do is save $1 for week one, $2 for week two, $3 for week three and so on all the way to $52 for the last week of the year. By week 52 you will have saved $1,378. This challenge is great for someone who needs to start out small and work their way up to a larger amounts as time goes on. Another challenge you can do is one with your spouse. Each of you will have to eliminate small mindless spending each week for a designated period of time (a few weeks or months). Take that money you would’ve spent on that coffee, candy bar, or magazine in the checkout line and put that money in a separate account. At the end of the time period see who has saved the most money.

Make a Vision Board

Ladies, you can probably relate to or understand this one a little more (thanks to Pinterest!). When you have something in front of you it is easier to keep your eyes on the prize, or in this case saving for the prize. It is very easy to let everyday spending take precedence over saving when the goal seems so far away. We tend to be more attached to things that are present or near-future and look at those with more value. By making a vision board (Guys,  your refrigerator and magnets will do just fine!) and attaching pictures of things you want for your future (i.e. house, car or luxury vacation) you will be able to see what goals you are working towards or in this case saving towards. This will help you keep your eye on the prize.

Remind Yourself of Financial Freedom Ahead

Sometimes when we think about savings we look at it as a form of punishment instead of a reward and therefore we find it virtually impossible to get on-board with the idea of saving money. Since our thoughts spur or hinder our behavior, changing the way you think will help with the saving process. The best way to approach the idea of saving money is to look at it as financial freedom. The more cash you have the less credit you will have to use therefore you will not be bound by larger loan amounts or higher interest rates. When you save you are creating freedom for yourself. Why not call your savings account something else other than “Savings Account”. Think, ‘House Fund‘ or ‘Future Home‘. By reminding yourself what this money is going towards you will have an easier time putting that money aside.

And Among All Else…Reward Yourself!

Since we live in a world where the latest and greatest items are arriving on shelves every other day, it is hard to choose saving money over spending it. That is why your hard work should not come without a reward. Let’s say you need to save up $5,000, once you have decided on the strategy to save that money, figure out a reward for saving that money as well. Maybe you take 10% of that and go treat yourself to something of your choosing. If you aren’t motivated by the goal then at least you can be motivated by the reward!

In today’s economy saving money is still difficult for many Americans but sometimes a simple change of attitude towards it or maybe an exciting new savings strategy is all you need to get the ball rolling. We hope that you are able to find one of these strategies that will work best for you! When you reach that money saving goal for your future home and are ready to take the next step, contact First Ohio for a free quote for your new home!