Want to Buy a Home? Save, Save, Save as a Permanent Way of Life

Are you interested in being a first time home buyer? A first priority will be learning to save, both for buying the home, and then for keeping it in good shape. There’s more to it, but that is usually the hardest part.

credit cardsWhere do you begin?

  • Having a budget will enable you to figure out where you can save more and spend less
  • Clean up any errors on your credit
  • Create a home buying plan

Save with a Budget

Creating a budget can be tedious, and admittedly it’s not fun, but it is immensely helpful if you want to get control over your finances (rather than have your spending control you). There are many free, online programs from financial gurus who can help you sort out what you need to factor in and where you may be able to cut costs, save for that house or condo (or retirement), and what is essential versus discretionary. Investopedia has a list of good sources. (I’ve used the Every Dollar one, it’s easy!)

Something to keep in mind is that having a budget and a plan to save is not something temporary, like a diet before a vacation that will be abandoned in the near future. Budgeting so that there’s money set aside for the most important things you want is a way of life. We intuitively know that if we spend all of our hard earned income on meals out, expensive cars, and luxury vacations, we may not be able to retire as early or as comfortably as we’d like. But unless we create the financial life we truly desire, it won’t happen. That’s as true for buying a home as it is for the retirement scenario. (more…)