NuKey Realty- August 28, 2023
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Effective Strategies for Saving a Down Payment for Your Dream Home
Today’s housing market is brutal. For many, the idea of a “dream home” is just that — a dream. But, with some careful planning, discipline, and a solid financial plan, we believe anyone can purchase the home of their dreams. Keep reading to find out about strategies you can use to save for a down payment and make your dream home in Spokane a reality.
Moving to the Spokane Area and Looking to Purchase Your Dream Home? Contact NuKey Realty today!
Budgeting is the Foundation of Your Dream Home
To create a budget, start by gathering all of your financial information, including income, bills, debts, and other miscellaneous expenses like food, gas, and other necessities. Then, categorize your expenses into fixed costs (such as rent, utilities, and loan payments) and variable costs (like groceries, entertainment, and dining out).
You should assign a realistic amount of funds to each category, doing your best to account for unexpected expenses. Once you’ve done so, make sure you’re not already in the red (if you are, keep reading for some tips). With this clear overview of your finances, you can begin identifying areas where you can cut back or redirect funds toward your savings for a down payment. Make sure you regularly track your spending and compare it to your budget in order to keep yourself accountable and on track to homeownership in Spokane.
Here are a few Tips to Maximize your Budget
As budgeting specialist Tere Stouffer reminds us, “Used correctly, a budget doesn’t restrict you; it empowers you.” This is to say, sticking to a budget is likely the KEY to the front door of your dream home. Here are some tips and tricks in order to get the most out of your budget.
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Set Clear Savings Goals:
Define a specific target for your down payment along with a clear timeline to give your savings purpose and direction. This will motivate you to stay disciplined!
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Cut Unnecessary Expenses:
Do you really need 4 different streaming services? How about those extra fees DoorDash likes to charge? Cut down on the things you don’t need in life to get the things you dream of.
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Downsize or Rent:
Everyone’s spatial needs are different when it comes to housing, but getting your dream house later might mean downsizing in the short term. See if you can get by with a smaller, cheaper space in the meantime. If you’re looking to downsize from your current home, our team can help!
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Negotiate Bills:
If you signed up for a service like a cell phone or internet, you might be able to negotiate for a cheaper contract. Check out what’s really eating into your budget, give them a call, and see if you qualify for a better deal!
Side Hustle Your Way into Your Dream Home
If you don’t have much overhead to save or have some spare time and want to save up for your down payment faster, a side hustle is a great way to increase your income. Here are a few of the biggest side hustles to save for your home down payment in 2023.
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Freelancing:
If you have skills, such as writing, graphic design, and programming, you can easily find work as a freelancer. You might even do so well that you can quit your day job (talk about a dream come true).
- E-commerce and Dropshipping:
As shopping online continues to flourish, ecommerce and dropshipping have become lucrative options. If you have some time and YouTube, you can easily set up an online store and sell products without the need for maintaining physical inventory — which is especially helpful if you downsize to save, as we recommended above!
- Gig Economy Platforms:
From food delivery to food photography, there’s a “gig” site for just about everything. These don’t always pay the best, but every penny counts when you’re saving for your own Mojo Dojo Casa House.
NuKey can help you find your dream home for your family. Search for homes in Spokane!
Invest in Your Dream Home Before You Buy It
If you’ll be saving for a down payment on the house of your dreams for a few years, wise investing choices can speed the process up. While we don’t recommend high-risk, high-reward investments, here are a few ideas to make your money work for you.
- High-Yield Savings Accounts:
A high-yield savings account is one of the safest short-term ways of investing money. These accounts offer higher interest rates when compared to traditional savings accounts and provide a small return on your money while keeping it at arm’s reach. -
Certificates of Deposit (CDs):
CD’s are fixed, time-based deposits offered by your bank. Since your principal is typically guaranteed, these are considered very low-risk investments — however, your money remains locked away for the duration of the term. This is a great idea if you are at least 6 months out from purchasing your home.
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Money Market Accounts:
Money market accounts are similar to savings accounts, but usually offer higher interest rates. Often, they provide checking and debit card features, which is great if you might need the funds sooner than you think!
Dream Big, Save Now, and Let us Help You Live in Luxury
As you begin your saving’s journey to owning real estate in Spokane, remember that your dream home is within reach. By implementing these effective, proven strategies, you’re well on your way to home ownership — and we at NuKey Realty & Property Management cannot wait to help you find the perfect home in Spokane. Our team is here to support you every step of the way!
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