Down Payments

Ten ways to save for a down payment

Saving for the down payment for your home in the Carolinas can easily seem overwhelming, but anything worth doing is going to take some hard work and sacrifice. If you are seeking out some ways to come up a few more dollars to add to your current nest egg, we have some excellent tips for you. From asking for dough from unlikely sources to making an extra buck or two on the side, these ideas might be help you on the road to financial success.

  1. Can you ask for a raise? Has it been a while since you have had a pay increase? Do you feel that there is the possibility that your boss would be receptive to a meeting where you discuss how your work has improved since your last review? This could be an excellent opportunity to make the case for a bump in your paycheck.
  2. Can you ask a family member to assist? Gifts up to $11,0000 are tax-exempt. Even if you propose this as an investment in your future, assistance from family or friends can really help.
  3. Turn trash into treasure! Do you have a CD collection that is collecting dust? Are there treasures in your attic? Selling things that you no longer use not only makes some extra cash, it also helps you avoid moving these items in the future. Use EBay or Craigslist to rid yourself of unwanted possessions and watch your savings grow.
  4. Can you pick up an odd job or a part time job? Whether it is waiting tables at night or offering to babysit your friend’s kids, you will be amazed at how many jobs there are. Ask neighbors if you can mow their lawns or offer grocery shopping services for older neighbors who can’t get out.
  5. Showcase your talent. Do you make delicious cookies? Could you deliver those in baskets for gifts? Are you handy with woodworking or sewing? Sites like Etsy could really make you some income that you don’t have to leave the house to do!
  6. Find old money. Could your parents have stashed away a box of old baseball cards? Might they have an envelope with savings bonds from when you were a kid? Are you owed anything? Check Internet sites to see if you are owed money. (Explore: www.ncrefund.com and www.foundmoney.com)

 Here are some tips for what you can do once you have money coming in:

  1. Stop wasting your money on interest and pay off your credit cards. This is not only going to help your savings, it will look much better when you credit is pulled.
  2. Be smart about budgeting. Don’t forget that the goal is to have a new home and that $40 on a meal out could be $4 on a meal in. You can still make life fun while nearing your goal, but make sure to budget how much you are spending.
  3. Find a way to invest what you have made in the steps above. Perhaps a regular savings account will not be as effective as a CD. Figure out the timeframe for buying your home and save accordingly.
  4. Talk to your Fairway Independent Mortgage Specialist about loans that may not require as much down and weigh the pros and cons of those loans. It could turn out that you need to save a lot less than you think!