3 tips to help you save money to buy a house

According to Pew Research Center, more than 52% of young adults between the ages of 18 and 29 years old still live with their parents. More people are coming out of college with increased student loans, car payments, and more credit card debt than ever before. Maybe you are one of those people who has checked their bank statements and wondered how you are ever going to get out of debt. 

If you’re ready to move out of your parent’s house or want to stop throwing away money on rent every month, here are three helpful tips to guide you towards saving money and buying a house.

Research Housing Prices and Mortgage Types

First and foremost, you need to figure out what you can realistically afford when buying a house. Find out what the current market value is for homes in the area you want to live. See if suburbs might be a bit out of your ideal area but are more affordable. It’s easy to find this information out by using websites like Zillow or Realtor.com.

Next, you’ll want to start educating yourself on different types of mortgages. Government-based loans, such as a VA or USDA mortgage, are offered to people within specific industries such as active military or agriculture. Some of these loans don’t require a downpayment or do not have limits as to how much you are allowed to take out as a loan.

More standardized types of loans, such as conventional or fixed-rate mortgages, will have more specifications. Learn more about each type to find out which one you might qualify for.

Go Over Your Weekly, Monthly, and Annual Budget

Have you ever received a realtor postcard in the mail from a high-end real estate agent and thought, “How could I possibly afford to buy a house like this?” You’re not alone, but dreaming big is certainly not impossible. It all starts with taking control of your budget. Self-discipline and a little bit of math can go a long way in terms of saving up enough money to buy a house. 

But what if you don’t have a budget? Well, there are dozens of free budget spreadsheets and templates online to help you get started. Make sure to look over the last week, month, and year of spending. Figure out how much is coming in versus what is going out.

Take a look at little things like monthly subscriptions or streaming services you don’t need. See if there are ways to consolidate your phone plan by getting on a family plan with someone you know. Think hard about what excess spending you can cut, like too many nights out with friends or going out to eat several times a week. It’s not about being overly frugal, but it is about being diligent and setting yourself up with a monthly or weekly allowance.

Get a Second Job or a Side Hustle

With rideshare apps and grocery delivery services, there are countless ways to get a side hustle to put away some extra cash. Lyft, DoorDash, and InstaCart are all services that allow you to work independently on your own schedule. That way, you can still work your full-time job and only work the hours you can or need to. The only requirement is that you have a driver’s license.

Some of these services don’t even require you to have a vehicle. Uber and Lyft, for instance, both offer rental and leasing options for their drivers who may not have a car. This is great for someone who is saving up to buy a car or lives in a bigger city where cars aren’t always necessary.

If you are not that into driving around town, there are a multitude of third-party sites that pay for your skills. Fiverr and UpWork are two of the most popular freelancing platforms that allow employers to outsource some of their upcoming projects. 

This could be anywhere from voice-over work to graphic design. Build out a portfolio of what you can offer along with your compensation terms, and you could be raking in the money in no time.

Automate Your Savings

Here’s a life hack to help save money without you even knowing it. More than likely, your bank offers an option for auto-transfer. This is where you can set a certain amount of money each month to be deposited from your checking account into your savings account. Even an amount as little as $25 can add up over time.

There are dozens of things you can do to save money. The most important thing to do is educate yourself before heading to your local bank to ask for a loan.