Do this to save money for your down payment.

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Real Estate

Do this if it's hard for you to save money.


The thought of a down payment to some can be scary. If you want to purchase a decent home and desire to save 20% of the home value for your down payment, it can be between $15,000 to $30,000 you have to save for homes ranging from 350,000 to $400,000. Plus an extra 1% of closing costs. 


To some, especially first time home buyers that seems difficult and as a result they get discouraged and never purchase a home. This does not have to be so. In this article I you'll discover a way to save for your down payment.


There's this quote that goes: "the best way to eat an elephant is one bite at a time."-Brian Tracy 


This is indicating no matter how big the goal is, Breaking it down into small steps eventually you will accomplish the goal. In this blog post you're going to discover a simple strategy to help you save money for your down payment to get the home of your dreams.  


The way the strategy works is you grab 100 envelopes and you're going to label the envelopes from 1 to 100. The number that's on the envelopes represents the amount of money you are going to put inside of the envelopes. But what you're really going to do is put double the amount of the number you see on the envelope. 


For example, let's say you are on envelope number three, you're going to put $6 in cash in envelope number three. When you are on envelope number 100 you're going to put $200 in envelope number 100.


If you do this from one through 100 you will save $10,000 in a 3 month span. Imagine doing that two times in a row you will have $20,000 in 6 months!. The catch to this is it's not that easy and it takes a lot of money. Which means it's best to break it down.


Instead of getting 100 envelopes why not get 10 envelopes. Do it from 1 through 10 and you do that over and over and over again until the year ends. Before you know it you'll have thousands of dollars saved up ready to buy your home.


This is fun, easy, and helps you to develop better financial habits. By doing an exercise like this you'll see that you might need to lay off some snacks that you're buying. Layoff some trips that you're going to. You might have to cook more often. Or you might have to cancel some subscriptions. The best part about this is your become creative about saving money. One of the most common characteristics I see amongst people who are financially well off is they have mastered the game of money. This exercise trains your brain to manage money and to be creative.


Let's face it, the rental market is high. You're paying an arm and a leg for a 735 square foot apartment. Instead of spending all that money on renting why not buy something that's yours and eventually you can sell it or do whatever you want with it. Also no matter what happens to the rental market your mortgage will remain the same. Don't let the big amount of money you need for a down payment scare you off into having the home of your dreams. It is possible!


What if you don't make enough money to do this challenge? Besides breaking it down to a smaller piece you should try doing some gigs like uber or get a second job. The truth of the matter is some people do not make enough money to save for a down payment. That's okay because there is always a solution. As your realtor I  want to encourage you to find solutions.  


I hope this helps..