This article is a great read for anyone who is looking at buying a home for the first time. Here are nine ways to save up for the 5% down payment in a year.

1) Move in with your parents:

If your parents live in the same city and they have the room for you you can save a lot of money within a year. The example this article uses is:

$800 per month for rent (on your own): $9,600 per year

$200 per month for rent (living with your parents): $2,400 per year

Savings per Year: $7,200

2) Move into a smaller and less expensive rental property

look around the city for a less expensive place or consider renting a place with a friend. Anything you can fit into your new property, ask your parents or friends if you can store it at their place.

3) Sell your Vehicle

If you can sell your vehicle and take the transit system, you can save yourself $3,500 a year.

4) Stop Buying Takeout

While $8 doesn’t seem like much to spend on lunch daily, it does add up. If you would start packing your lunch each week you could save $1,250 a year.

5) Cutback on Vacations

Instead of going somewhere exotic and pricy this year, try looking at a cheaper vacation for $500. This way you can save $2,000 and still go on a vacation.

6) Pets

While pets are fun to have, they are a luxury. If you don’t have a pet now, wait until you have saved up enough money for your down payment and then decide.

7) Put a Price Limit on Presents

While it is nice to get an extravagant gift for your loved ones, this year you should consider putting a price limit on each one. This could save you another $500 towards your downpayment.

8) Cable & Phone Expenses

There are many options for TV entertainment nowadays that cable isn’t always needed. Netflix, Shomi or Apple TV are some ways to replace cable for a lot less money.

Landlines are another item that is a luxury. Most of us carry a cell phone around 24 /7 so people can contact you on that line. Overall both of these items will save you $1,090 a year.

9) Cutting Back on Spending Money at Restaurants

On average, we spend $250 a month on eating out at restaurants and bars. If you could cut back by 50% you could save $1,500 a year.

If you could follow all of these points, you could save $19,340 in one year.


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