Do you know that one of the top 3 reasons that people opt out of the home buying process is because of lack of funds? They get overwhelmed by the thought of saving for a down payment and closing costs and ditch the idea of home ownership altogether. Or they decide that because the amount needed seems so astronomical that it would take far too long to save so they wait until "later" and then later never comes. I recently read an article about a young lady who . It was incredibly inspiring because it was not a get rich quick scheme. She didn't live with her parents, and she didn't have a six figure income. She took up photography, saved half her paycheck as well as  the money from her side gig.  This article inspired me to write a blog to provide a few tips and tricks to those of you who are wanting to purchase a home but don't know where to start with regard to the saving process.  Below you'll find a few options.
saved $100,000 in 3.5 years

Create a budget

Get real with yourself about your debts and how much comes in and goes out every month. Then determine  how much you can afford to realistically save every month from your main income. (Don't forget to include those tithes and offering!). There are several free worksheets available n the internet but if you have $30 to spend then I would highly recommend that you purchase the Budget Therapy Workbook. It was written by one of the most financially savvy couples I know and they leave no stone un-turned when it comes to the budgeting and savings process.

 Borrow form your 401K
Although I list this as an option, this should be your last option. However, if you should choose to take this route,  the trick here is to pay it back over time, automatically. I would never advise anyone to liquidate their entire 401K to purchase a home, but if  you have a comfortable amount available then this may be a viable option as there is no penalty when borrowing for your first home purchase (check your personal retirement plan to verify this)

Cut the Cable
Cable is not cheap, that is why I don't have it. I personally prefer books and  web-series anyway so I can very easily live without it. You can to, so why not save a $100 a month, or more, and kill the cable. Get yourself an HD antenna, Apple TV, ROKU, Chromecast or Amazon Firestick if you just need television.

Work a few extra shifts at work/Get a part time job/side hustle
Does your job offer overtime? Work one extra shift a week. Try that for a year and see how much money you can save.  Become an Uber driver. Are you good at taking photographs? Great at make up application? Monetize your hobbies.  Also, let's not forget about the influx of  legitimate companies that hire people to work from the comfort of their home. Apple, Google, Neiman Marcus, to name a few. The options are endless when it comes to making extra cash. Where there is a will there is a way.

Gift funds
There are some loan products (Mortgage loans) available that allow family members to gift money towards your home purchase so if you have a generous family member who wants to help out you may want to consider taking Granny up on that offer. (You'll probably get more personal gratification from saving on your own.)

 Ditch the fast food
Home cooked food typically tastes better and is better for you anyway so try meal planning. Keep it simple so that you don't overwhelm yourself. Plan for 30 days out so that there is less of a likelihood that you'll fall off track. You will save tons of money this way.


Get a roomie/Move to a cheaper place/Back with the parents
I once showed a homes to five guys. They were all over the age of 25 and they all had professional jobs. They were splitting the rent 5 ways on a home that was $1900 a month. Their individual rent was going to be $380.  I thought it was genius especially being that they all had decent paying jobs. Just imagine how much money they saved being that the average rent for a 1 bedroom in Dallas is $950. That's roughly a savings of  $6840 a year on rent alone. If you have family members that will allow you to move in as you save for a new home, consider that. My only suggestion is if you go that route make sure that it is mutually beneficial for you both. (i.e  Don't be a freeloader- Make sure you help around the house, buy groceries and just in general, be considerate.)

Lower the cell phone Plan
Do you really need unlimited data? My cell phone bill is $35 per month. I have unlimited texts and minutes and 2.5 gigs of data. Truthfully, I could use more data but I won't up my plan until it is absolutely necessary. But, in the meantime, when I can, I connect to Wifi that is available so that I won't use my data too quickly.  My previous bill was $80 so my monthly savings is approximately $45 a month. Call your cell phone carrier to discuss whether you are getting the best possible rate also, weigh the costs of whether carrying cell phone insurance is worth it or not. In my case, it was not because I don't buy super expensive phones. Also, if you have the expensive habit of purchasing every phone that is sold, then you may want to not do that while you're saving for a home, Everyone has their "thing" that they like to splurge on but just consider the costs first and whether you reaallllyyy need the Galaxy S7 that you can spill champagne on and it still functions. I'd rather save the champagne (ginger ale for me)  for my first night in my new home.


Sell some stuff
Got extra clothes? Take them to Buffalo exchange, put them on Ebay. Furniture and or Home Decor? Post it on Craigslist or an App like VarageSale. Get rid of it and make a few bucks in the process. I suggest selling locally so that you won't incur the costs of shipping anything.

And last but not least, before you do any of these things open a bank account specifically for your home purchasing goal. Preferably an online one that you don't have branch access to. Make sure that you put and/or direct deposit all of the money that you save into that account. Watch it grow and don't touch it until you've reached your goal.

Happy House Hunting!

Donna Foy,Realtor
972-413-881