A Few Small Steps Toward Your Down Payment
February 23, 2011
Over half of Ideal Homes home buyers are purchasing their first home. One of the challenges of home ownership is saving money for that intimidating down payment. Preparation for your down payment is a challenge. Spending money without being mindful of budget is easy; debit and credit cards = quick swipes to purchases. Saving money conversely is not so easy. Saving money is important. What if you've had your eye on a new home in Oklahoma City? If you are a renter, the possibility of home ownership seems more and more appealing with each passing rent payment. The benefit of tax deductions and the building of equity make initial sacrifices of spending to save for a down payment a little easier to support. Where will the money come from? Where will you find your down payment and all those other new home expenses? Chances are, the money may be easier to find than you think. The first place to start looking - your spending habits. If you arrive at work every morning with a cup of coffee from your favorite coffee shop, how much does that put you back? Let's assume $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 Joe addiction only two days a week or find a convenience store that sells the stuff at a quarter of the price. It's 11 a.m., and you're hungry. Where will you and your co-workers go for lunch today? Restaurant meals 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 or check out the $1 menu at many fast-food places. If new homeownership is on your horizon, make a plan. Set a budget and watch those expenses. It may stretch your spending resolve initially, but in the end it will be well worth the sacrifices made. Contact us and ask us for additional tips that will help you take the first big step to home ownership.