Squeeze in Room to Save To Buy a House

You want to save to buy a house. But do you find you’ve got too much month at the end of the money?
Living paycheck to paycheck has become a way of life for 61 percent of all employed people in the U.S. This is up from 50{fae6e0dc5469353c1b6afec575a6cd2b57d3d65f6b4bd339657718f6ab4bef32} last year. And it’s not just lower income families that are having trouble stretching dollars and saving money for future plans such as buying a house. Of families reporting $100,000 or more in yearly income, nearly 21 percent of those say they are barely making it between paydays.
With budgets stretched to the max, how can you save money for your future – to buy your dream house, take vacation, or put away money for retirement? One out of four people say they don’t put anything aside for savings. And 34 percent of those who do are saving less than $100 a month.
Do you want to break the paycheck to paycheck cycle? Then you have to be creative. Here are some ways to save money. More important, these are some ways to come up with money that you can put into your savings account. Before you know it, you will have money saved up to buy a house, take a vacation, or have a cushion for unexpected expenses.
Keep track – One of the most effective ways to start saving money is to track how you are spending it. Keep receipts and write down every penny you spend for a month. Then take a look at the list and figure out what can be cut out, cut down or retooled. Research and write down what kind of down payment you will need to buy a house, so you have the figure in front of you as a reminder.
Get a Better Deal – Shop around for better prices on cable, gas or electric rates, cell phones, etc. Competition in the areas is fierce and there are deals to be had if you are proactive. Switch your cell phone to a pay as you go plan so you know your expenses up front. Look into utility aggregates. Cut back on premium cable services. Often when you make the call to cancel service, the company will offer you a discount to stay on. Then bank the savings. If you’re looking to buy a house, be sure to check out the average cost of utilities before making a commitment.
Refund to Cash Flow – If you got a tax refund this year, make some changes this year to increase your cash flow. Adjust your withholding from your paycheck to increase your take-home pay and decrease next year’s refund. Figure out what the extra amount is and put that into savings with each paycheck.
Forget the Extra Weeks – June, August and November of this year will have five Fridays instead of four. If you get paid every Friday, take the paychecks from those extra weeks and put them in savings. You will never miss them.
Do It Yourself – Make your own coffee instead of stopping at Starbucks. Pack your lunch instead of driving through a fast food restaurant. Watch what’s on TV rather than going to a movie. Keep track every time you cut back and put the money saved aside. Remember – you won’t remember what kind of coffee you had last year, but you will remember the savings when you go to buy a house.
Make Change – Pennies do turn into dollars. And dollars turn into down payments to buy a house. Make it a habit to pay for things will bills only, then pocket the coins and stash them until you have enough to deposit into savings.