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10 Ways to Save For a Home in a Hurry

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So, you’re ready to buy a home but don’t know where to start when it comes to saving. You probably have bills now (rent, utilties, car payment, etc.) and now you’re trying to save thousands of dollars for a down payment on a home. How do you do it?

How to Save for a Home

There is no “fast” way to save for a home. When it comes to saving, finding focus and consistency lead to success. So, how do you go about successfully saving for a house? Here’s where you can start:

  • Get an idea of the buyer-seller market in your area. Of course, everyone has their idea of a dream home but buying a lower cost home may help you in the long run. After years of adding to the home and any renovations you may have made, your equity will go up and you’ll be more likely to be able to afford a higher priced home in the future.
  • Automate your savings. Most banks have an option to automatically deposit cash into your savings account. For instance, if you get paid on the 15th each month and want to put $200 of each check into savings you can set it up to transfer on the 16th. Doing this ensures that you won’t forget to save (or find a reason not to).
  • Save every extra penny you can. In addition to automated savings, try to save 100% of all windfalls. This includes bonuses, gift money, and prizes. You may also consider participating in a money challenge to encourage healthy saving habits.
  • Don’t lose focus. Saving for a home can be consuming. Don’t lose focus on the other important things in life. For instance, if you are saving for a home it would be counterproductive to skip paying your rent. Although you don’t want to be renting any longer, you still need a place to live. Saving for your home is important but so is maintaining good personal finance practices.
  • Budget. Budget. Budget. Create a budget and stick to it. Budgeting will help you realize where you can cut expenses and where you can’t. This will help add to the savings for your home.
  • Generate more income. If you want to save more money fast, you may want to consider looking for ways to make more money.

10 Ways to Speed Up Saving for a Home

<p>Speeding up your savings isn’t really possible without making more money or altering your life in some way. If you’re looking for ways to save for a home fast, think about taking on one or more of these tasks to generate more income: Ask for a raise. If you’ve been at your job for a while, ask for a raise. Negotiating a raise can be intimidating but remember that your time is worth money. Walk into the negotiation knowing what you’re worth and so will they. Having additional money each check will help you save for your home. Get a second job. Maybe you aren’t able to get a raise with your current employer. If that’s the case search for a second job. Consider weekend and part-time positions that won’t add too much to your plate but will help you save. Downsize your current living situation. Not everyone is able to do this but you can “generate” more income by downsizing for a short period before buying your home. Many couples move back into their parent’s home when saving to buy their own. Have a yard sale. Almost everyone has junk in their house they could get rid of and, chances are, there is someone out there willing to buy it and add it to the junk at their home. Hold a yard sale to generate some extra cash to add to savings. Make money with surveys online. There are survey sites that pay fairly well. You can make extra cash to stash away using the various survey websites out there. Make sure you get signed up with one that actually pays out though. Trim your budget. If you’ve taken the advice above, you have a budget. Are there any places you can cut down? Groceries are always my first go-to when I’m looking to trim my budget. Sell blood or plasma. There are parts of your body you can legally sell for money. Blood and plasma are both great ways to make extra cash to put in savings, especially if your blood type is rare. Many places will pay up to $400 for donating plasma, depending on the amount you’re able to give. Most donations equate to about $25 to $50 though. You can donate regularly though so if you want to add this to your list of ways to make extra cash it’s a good one. Open a high-yield savings account. Opening a savings account with a higher interest rate may help you save money faster by generating more money in interest than you would normally. However, many high-yield accounts have penalties if/when you withdrawal so before you open an account, read the fine print. Freelance. If you’re a writer or know a trade that you can freelance with, do it. Freelancing is a great way to make extra money to save for a home. You generally make your own schedule and only play off your own strengths. Talk to a financial advisor. Lastly, if you’re having trouble saving for your home or need more ideas on how to better prepare for your home, contact a financial advisor. They won’t necessarily help you generate more income but they can help you find money you didn’t know you had by sorting your finances. Getting ready to buy a home is an exciting and stressful time. Wanting to get it over with is natural but, when it comes to saving for a home, there is no fast track. However, take the tips and ideas above into consideration and you’ll be on your way in no time.</p>::Pexels
Speeding up your savings isn’t really possible without making more money or altering your life in some way. If you’re looking for ways to save for a home fast, think about taking on one or more of these tasks to generate more income:

  1. Ask for a raise. If you’ve been at your job for a while, ask for a raise. Negotiating a raise can be intimidating but remember that your time is worth money. Walk into the negotiation knowing what you’re worth and so will they. Having additional money each check will help you save for your home.
  2. Get a second job. Maybe you aren’t able to get a raise with your current employer. If that’s the case search for a second job. Consider weekend and part-time positions that won’t add too much to your plate but will help you save.
  3. Downsize your current living situation. Not everyone is able to do this but you can “generate” more income by downsizing for a short period before buying your home. Many couples move back into their parent’s home when saving to buy their own.
  4. Have a yard sale. Almost everyone has junk in their house they could get rid of and, chances are, there is someone out there willing to buy it and add it to the junk at their home. Hold a yard sale to generate some extra cash to add to savings.
  5. Make money with surveys online. There are survey sites that pay fairly well. You can make extra cash to stash away using the various survey websites out there. Make sure you get signed up with one that actually pays out though.
  6. Trim your budget. If you’ve taken the advice above, you have a budget. Are there any places you can cut down? Groceries are always my first go-to when I’m looking to trim my budget.
  7. Sell blood or plasma. There are parts of your body you can legally sell for money. Blood and plasma are both great ways to make extra cash to put in savings, especially if your blood type is rare. Many places will pay up to $400 for donating plasma, depending on the amount you’re able to give. Most donations equate to about $25 to $50 though. You can donate regularly though so if you want to add this to your list of ways to make extra cash it’s a good one.
  8. Open a high-yield savings account. Opening a savings account with a higher interest rate may help you save money faster by generating more money in interest than you would normally. However, many high-yield accounts have penalties if/when you withdrawal so before you open an account, read the fine print.
  9. Freelance. If you’re a writer or know a trade that you can freelance with, do it. Freelancing is a great way to make extra money to save for a home. You generally make your own schedule and only play off your own strengths.
  10. Talk to a financial advisor. Lastly, if you’re having trouble saving for your home or need more ideas on how to better prepare for your home, contact a financial advisor. They won’t necessarily help you generate more income but they can help you find money you didn’t know you had by sorting your finances.

Getting ready to buy a home is an exciting and stressful time. Wanting to get it over with is natural but, when it comes to saving for a home, there is no fast track. However, take the tips and ideas above into consideration and you’ll be on your way in no time.

Have you saved for a home? How long did it take?

Dear Best Friend, Here Are The Reasons I’m Not Loaning You That Money

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<p>"Can you loan me some money? Just until I get back on my feet?” Many of us have been in the position where a friend or family member is asking for financial assistance. If you’re like me, you’ve even gone into debt loaning that money. If the person is close to you, it may be hard to say no. However, there are plenty of reasons you have to say no without feeling bad.</p>::Pexels
“Can you loan me some money? Just until I get back on my feet?”

Many of us have been in the position where a friend or family member is asking for financial assistance. If you’re like me, you’ve even gone into debt loaning that money. If the person is close to you, it may be hard to say no. However, there are plenty of reasons you have to say no without feeling bad.

Dear Best Friend,

  1. I won’t be able to loan you the money you are asking for because I don’t have it. Even if this is a little, white lie, and you do have some spare cash lying around, you never had cash set aside for your friend, sister, mother or brother’s financial emergency. Look out for yourself first.
  2. I’m not loaning you that money because you couldn’t tell me what you are doing with it. Remember, if you are willing to loan someone money they should at least be willing to tell you what they need the money for.
  3. The reason I’m not loaning you that money is that you’ve never paid me back. Don’t get burned twice. If someone has already borrowed from you and left the loan unpaid, don’t lend them more cash. You’ll just keep digging yourself into a deeper hole.
  4. Another reason I’m not going to loan you any money is that you just spent a ton of unnecessary money. Tons of people spend money on new clothes and flashy things and then need to ask friends and family for money. Oftentimes, they pull their loved ones into debt with them.
  5. Lastly, I cannot afford to lose the money. Every time you lend someone money you are basically gambling it (except without any possibility of gaining more, unless you charge interest). You have to be able to afford to lose the cash you lend in the event that your friend or relative doesn’t pay you back.

I Will Still Help…

Although I won’t be loaning you that money, I will still help, and you can help your friends and family in a financial crisis too. Here’s how:

  1. Go over expenses with them. Offer to help them take a look at their finances. If you’re doing well financially, you may be able to help them get on their feet and stay there.
  2. Sit down and help them make a budget. Once you look at where their money is going, set up a loose budget with them. If you’re already budgeting, you can help your friend or family member better understand theirs.
  3. Identify places they may be able to trim. Talk with them about areas they may be able to scale down on (i.e. clothing cost, eating out, grocery bill, electricity, and water). Then help them decide on a way to track their spending and budget. (There are plenty of helpful apps and other tools.)
  4. Construct a savings plan. Once you’ve trimmed up the budget a bit, then help them establish a savings plan (even something as simple as the 52 Week Money Challenge). Even if it is only a few dollars here and there, it can make a world of difference.
  5. Provide support. If you’re able to provide your friend or relative with a little financial advice, you can also provide them with support moving forward. Personal finance doesn’t come easily for everyone. To prevent them from continuing the same cycle, provide them with continuous verbal/emotional support of their savings plan and goals and constantly remind them of what they are working towards.

Loaning people money is a sticky area. Don’t feel like you have to give anyone anything, especially if you truly don’t have the money to do so. Have you ever turned someone down for a loan? What was your reasoning? 

Photo: The One Thing

How Celeste and Rita Paid Off $49,000 of Debt in 18 Months

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Hawaii, Ireland, and $49,000 of debt gone!

In this interview, Celeste and Rita share how they’ve balanced saving money with what’s truly important to them, the sacrifices they’ve made for their goal, and the unexpected result from their debt free journey.

DogsHere is the interview:

ME:  Thank you for sharing your story with Our Debt Free Family! Please tell us a little about yourselves so our readers can get to know you.

We are Celeste and Rita, and we are both 44 years old. We’ve been together for five years and married for two, and we live in Portland, Oregon.

Rita works in law enforcement. She enjoys listening to podcasts and the radio show from her hometown, running, and playing with our dogs.

Celeste works as a nurse part-time, volunteers, and enjoys making things with her hands: knitting, sewing, and crafting.

We have two dogs and two cats. We both love to travel, IPA craft beers, updating our 1957 home, and ’80’s music.

ME: Welcome! What made you decide to focus on becoming debt free?

Rita will be able to retire in about 11 years so the idea of enjoying our retirement without the weight of debt is a no-brainer.

CatsME: How much debt have you paid off, and how long has it taken you?

With your guidance, we’ve paid off $49,048.83 in the last 18 months. Woohoo!! We now have $279,604.76 left including our mortgage.

ME: Congratulations!! What kind of debt was it?

We have paid off three credit cards, a motorcycle, two cars, and a good portion of student loans, along with making our regular monthly payments.

ME: You’ve crossed off a lot of items from your debt snowball! What did you do for work while you’ve been paying off your debt?

We both worked our jobs mentioned earlier. About ten months ago, Celeste decreased her work hours from about 35/week to about 10/week, which also decreased our income.

ME: What has your annual income been during this time?

About $65,800.00, which includes both of our incomes and rental income from the attached apartment we rent out.

ME: Did you do anything to increase your income?

Rita volunteered for two work trips where she was able to earn overtime.

ME: What sacrifices did you make to reach your goal?

Rita going on those trips was a huge sacrifice for us. She was gone for 30 to 77 days. It’s tough to be apart and away from home for so long.

We also decided to downsize from two cars to one. Now we only pay insurance/maintenance/gas for one car and one motorcycle. It has forced us to think ahead and to limit those trips “for just one thing.” We also use public transportation and ride bikes or walk whenever we can.

DIY

ME: What are your best money-saving tips?

Perhaps the most important thing we do is buy with intention. We ask ourselves, “Do we really need this new item? Can we borrow or share an item? Can we purchase the item second hand?”

We would rather spend our money on experiences than “stuff.”

With Celeste not working as much, she’s explored DIY methods to save money and decrease toxins/plastics in our home.

She makes our laundry soap, hand soap, lotion, almond butter, shampoo, and toothpaste. She’s also made produce bags from old t-shirts and reusable hankies from an old sheet.

We buy most of our dry foods (i.e. spices, rice, beans, flour) in bulk to decrease packaging and save money.

Because we produce less trash we’re able to use “on-call” trash pick up about every 6 weeks.

We wash our clothes in cold water and use the clothesline whenever possible. We both take lunch to work, and Rita has her coffeemaker at work to cut down on runs to the coffee shops.

ME: You’ve done a lot to cut your spending! What advice would you give to someone considering starting their own debt free journey?

We haven’t stopped doing the things we enjoy in order to pay off our debt faster. Instead, we just do them less often to keep us sane. Everyone is different and has different ideas of happiness. This works best for us.

Also, don’t beat yourself up for slipping sometimes. Most people haven’t been taught about money management. It takes time to learn and of course, practice and patience. Taking little steps can make a difference.

Ireland

ME: That is great advice! Have you made any big purchases with cash? If so, how long did it take you to save up?

Rita is from Ireland and goes back every year to visit family. In 2015, we both visited for about $5,000. We also took a vacation to Hawaii and spent about $3,000 on the trip.

We started saving for the trips about a year in advance, saving $100 of each paycheck ($400/month). We also used some money from Rita’s work trips for these vacations.

We bought a much-needed new mattress and box spring set for $1,700. We used money from Rita’s work trip and bought when it was on sale. Celeste made a cool headboard for $200 to go with it. The fabric for the headboard was discounted with coupons.

We also put in a small deck with used composite material for less than $200. The composite decking itself would have been $800 if we had bought it new!

Homemade HeadboardME: You’ve accomplished a lot in the last 18 months! What has been the best part about your debt free journey?

Learning about healthy financial habits has been really liberating!

An unexpected benefit is how it’s enhanced our relationship.

Combining our bank accounts and debt was really hard for Celeste due to her large amount of student loans. She didn’t think Rita should pay for the debt Celeste incurred before they were married.

It’s been a process, but through it we’ve become more of a TEAM. We’ve opened up our communication, and it’s brought us closer.

We are on track with each other and our goals are now in sync.

ME: Thank YOU, Celeste and Rita, for sharing your story with us!

Now I’d love to hear about you!

What parts of Celeste and Rita’s story did you find most inspiring? Which tips can you apply to help you reach your financial goals faster? Share in the comments below.

Why You Need Life Insurance

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Young people in their 20s don’t think of life insurance as something that’s a necessity for themselves. Yet they are at the perfect age to buy a term or whole life insurance policy to take care of outstanding debts in case they die prematurely. And because young people are far more likely to carry a heavy debt load straight out of college, they need something to protect family members who co-signed for the loan. Or leave money to cover any expenses including the funeral and unpaid credit card bills. These are thoughts that no one likes to think as they’re a bit morbid, but it is a reality of life.

Young adults have the benefit of being in what’s known as a low-risk pool for insurers. They’re far less likely to have serious or life-threatening illnesses, and insurers reward that with lower premiums. The same goes for term or whole life insurance. And even though term life insurance only lasts for so long, it’s still worth buying while young. One reason is that life circumstances change over time. Someone who’s single in their 20s may be married in their 30s and raising a family. In the event they have an untimely passing in their 50s, they may still have a term life insurance policy in effect that benefits those who survive.

Take the quiz below to see how much you know about the benefits of getting life insurance at a young age. You might be surprised at what you learn!

Financial Challenge Update: Can You Rush Into Saving?

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<p>If you’re a regular reader on Our Debt Free Family, you know that I’ve been facing some financial trouble, as well as some financials wins, in recent months. I finally got to the point that I was ready to take control of my finances again, from every angle. Of course, every financial challenge is a lesson. Because I’d not been able to save or invest in a while, I may have jumped into saving money too quickly. You’re probably thinking to yourself, “Is that even possible?” For me, it was (and still is). Below you’ll find tips and advice on how to avoid rushing into savings.</p>::Pexels
If you’re a regular reader on Our Debt Free Family, you know that I’ve been facing some financial trouble, as well as some financials wins, in recent months. I finally got to the point that I was ready to take control of my finances again, from every angle.

Of course, every financial challenge is a lesson. Because I’d not been able to save or invest in a while, I may have jumped into saving money too quickly.

You’re probably thinking to yourself, “Is that even possible?” For me, it was (and still is). Below you’ll find tips and advice on how to avoid rushing into savings.

Financial Challenge: Can You Rush Into Saving?

Like I said, for me, saving too quickly was a possibility. I set goals that made life a little bit harder. I wanted to save $400 a month to start. However, I budgeted myself down to the penny to get there. There was nothing left for me to do anything besides sit in the house. Not only will that make for a rather boring Saturday night, but it will also make you loathe saving money (and possibly tempt you to take from savings down the road). Here are three tips I’d give anyone about to start regular savings for the first time:

Don’t Strap Yourself

When you’re budgeting to save money, don’t strap yourself like I did. A huge part of this financial challenge was to simply become more aware of my finances. Setting such a steep savings goal to start off definitely made me take a closer look at what I was spending each month. However, it also made it so that I couldn’t do much else other than saving money. If you are trying to save up for something specific or need the cash quickly, this isn’t a problem. But, for long-term savings plans, you want to have something you can stick to for a long time without feeling strapped.

Be Realistic

Which brings us to my next point. You’ve got to be realistic when you are setting your savings goals. No matter how much you are able to save, something is better than nothing. Start out with a small financial challenge for saving, like the 52 Week Money Challenge or the 365 Day Money Challenge. Once you get the hang of putting money aside every day or every week, you can move on to bigger goals. Just be sure they are within your current budget.

Consistency is Key

Finally, consistency is key. In any kind of challenge, and especially in a financial challenge, staying consistent can prove to substantially beneficial. For instance, if you’ve decided to put $50 per week into a savings account but skip one week to go bowling instead you may be inclined to skip your savings deposit in weeks to come as well. If you stay consistent, however, it will become almost second nature. (Setting up automatic deposits is a great way to remain consistent with your savings goals.)

Whether you are trying to save or you’re trying to get a better look at your finances, taking on a challenge is a great way to get started. Check out my first post on My Financial Challenge and, as always, feel free to reach out!