While ditching a $3 cup of coffee every morning might not sound like much, it definitely saves up. Consider this: If you stop buying that morning coffee, you will save $21 every week. Over the course of the year, you will have saved a total of $1,092. This total will fluctuate depending on the final price of your coffee, but the fact you can accrue more than $1,000 by not buying coffee is a cost-saving measure you need to consider if you're looking to buy a home.
But there are other ways to save up for a future payment.
Work in the Gig Economy
The gig economy can be a viable option for you to earn money on the side. It is defined as finding work through mobile applications and startups. Consider driving at night or the weekends, delivering meals and groceries, or even selling your crafts and freelancing. All are great options to pick up extra cash that can be set aside in your savings fund for a future home.
Limit Your Expenses
The best way to save for a home is to simply limit your current spending levels. Don't eat out as often and instead, rely on cooking your own meals and taking a lunch to work everyday.
Other areas to consider trimming include the cable subscription, cellphone bill, gym membership and lifestyle choices. Look at your usage and decide if you really need hundreds of channels, or unlimited data, U.S. News & World Report recommended [1]. Those two bills alone can equal more than $100 in savings if you scale back your usage and rely on wireless Internet a majority of the time.
When it comes to your lifestyle, limit the number of days you go out, or consider planning outings that are cheap - or even better, free. Depending on your current age, you may even find the idea of going out every weekend to be a little too much anyway.
Saving for a home requires patience and dedication. Sacrifices are necessary, but you'll be thankful for cutting cable when you're able to truly call a home your own.
Source:
[1] 5 Easy Ways to Kill Your Cable Bill
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