Rents are rising and the amount of student debt at an all-time high. It's no surprise that many potential buyers are unable to save up for a down payment. If this sounds like you, there's still hope. With the correction of a couple bad habits, proper planning, and the help of technology, you too can save for that down payment! Probably sooner than you think!
Automatic deposits - Make automatic deposits into a savings account. Schedule them right after your pay check comes in. If you can't automate your deposits, set a reminder to transfer money every two weeks, or find a bank that can! The easier and more automatic you make saving, the more likely you are to succeed.
Cut your spending - Find an area of spending that you can afford to cut back on. Eating out? To-go coffees? Consider bike, BART, bus, or walking instead of Lyft or UBER? Whatever you can cut back on, tally up your saved funds and add them directly to your savings account.
"Round-off" app - Apps like Acorns and Clarity Money round off your transactions and either invest your money or add it to a savings account. Take that change and make a CHANGE!
Clean house - One persons trash is another persons treasure! Get rid of all that stuff that has just been sitting around gathering dust. Declutter those closets, drawers and shelves. Sell anything you don't want on Facebook, Craigslist, or Ebay.
Bonus - Less stuff to move when you buy your first home!
The elusive 20% down payment isn't necessarily a must have to buy a home. In fact, thanks to low down payment loan options and a plethora of down payment assistance programs, you can actually buy a property with much less than that... sometimes only 3%!