Saving Money Properly to Buy a Home

    Saving money to buy a home is not an easy task but the following tips should help you succeed.

    Savings Accounts

    Set up a special Interest bearing savings account with your bank. Create a fail-safe plan that would require two signatures perhaps in order to withdraw money. This way, casual withdrawals will be eliminated. We all assume that $5 here or $10 there will not make a difference, but over time, it does add up.

    Short-Term Certificates of Deposit

    When you have accumulated enough money in your savings account you might want to consider purchasing short term CD’s. The interest rate is usually better than most savings accounts and the money is still liquid.


    Create a budget and follow it. After necessities and bills, your surplus income should go into savings. Treat savings as you would any other bill to be paid. Assign a due date, ideally once a month, and pay it on that date each month. Until you reach your savings goal, keep adjustments of your budget to a minimum.

    Direct Deposit

    Your employer may be able to help with this. If you participate in direct deposit at your place of employment, you can request that your paychecks be split into two accounts. You allot how much goes into savings, with the balance into your regular account. If direct deposit is not available at your place of business, you can arrange with your bank for automatic withdrawals to pay savings. The theory is that if you don’t see it, you can’t spend it


    Any tax refunds or product rebates that you receive can boost your savings balance considerably and should be automatically deposited in that account.

    Savings Jar

    This seems almost too simple but it really does work. Every day empty your pockets of change and place it in a jar. Invest in inexpensive coin wrappers that are available in most stores. Once a month count out your change, roll it up and deposit it in the bank.

    Eliminate Excess Spending

    When it’s time to go grocery shopping, make a list and stick to it. This will eliminate impulse buying. Only visit the grocer once a week. If you are missing an ingredient, do without or substitute. Be creative and you may happier with your result than with the original recipe. Utilize manufacturers’ coupons when you shop for groceries.

    There are myriad websites that offer printable coupons on items you normally buy. What you save can be deposited in savings. Cut back on eating out and entertainment expenses. Rent a movie and cook at home. You can invite friends and have each bring a different part of the meal.

    Sell What You Don’t Need

    Lastly, have a garage sale and deposit the proceeds in savings. On the plus side, you will also be lessening what must be packed up when you move into your new home!

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