As rent prices continue to skyrocket, it is but natural to aspire to have a home of your own. But how exactly will you save up? The April median listing price stood at $320,000, so that's around $32,000 for a 10 percent downpayment or double that amount, depending on the lender.
While that may be a lot to save up for an average American, there are ways to make saving money a lot easier. Here are some money-saving tips you can follow, so you can be on your way to purchasing that dream home sooner.
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Make a dedicated savings account
To save up money effectively for the downpayment, you set aside some cash, especially for that purpose. The most effective way to do this is to separate your overall savings from the supposed downpayment.
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Skip vacations
If you like to visit far places and spend some time burning cash, you might want to pass while saving up for a downpayment. Vacations are usually expensive. And when you're at it, you may even spend more than you originally planned, so it's best to pass up any vacation offers or cancel plans while saving.
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Review your expenses
Take a look at how you're spending your money now. Is there anything that you can remove from your spending list? Can you go without one thing that you're currently spending on? Is everything you're buying right now want or a need?
If you can go without one or two things, try and allot the money you spend on that to your savings instead. This will help you save up for your downpayment faster.
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Consider getting another job
If there's a better and faster way to get you the house downpayment you need, it's to get more income sources. One of the surest ways to get that going for you is to get a second or third job.
This may not seem so easy at first, but it's definitely worth it. Use your resources to find part-time jobs that can align with your vacant hours. Ask your friends and family members if they know a business that will be interested in hiring someone with your skillset.
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Sell some stuff
Another way to make a quick buck is to sell some of your investments. It can be any of your belongings that you're not using anymore.
You can also consider renting out your stuff. Whether it's a car, an inflatable pool, or maybe an heirloom, selling some stuff can definitely help you add some cash into your downpayment savings.
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Explore more side hustles
If you still need extra cash, consider getting another side hustle. Are you good at baking? Do you have a great online presence? Can you do portraits? If you are good at absolutely anything at all, you can make extra money from that skill.
You can get commissions from the things you can consider hobbies like flower arrangement and story-writing. All you have to do is search online and reach out to the people who might need your services.