Saving for a Down-Payment

by Steve Hartung 06/09/2019

You've assessed your budget, changed your habits, and made spending cuts but you still need to reach your down payment faster. Consider these significant steps to help you get there.

  • Take on a second part-time job. If your work schedule allows you to add a second job find a part-time option that will enable you to earn one or two thousand dollars more each month. If you are part of a couple, each partner can get a light part-time job without feeling overloaded. Bonus—occupying your time more does help lead to less spending and more saving! Tutor students, pet sit, or take a steady part-time gig!
  • Move back home, move in with extended family, or get a roommate. If your family is on board with the changes you need to make to meet your financial goals, consider moving in with someone in your family to pay lower rent and save tens of thousands over one year. If family help isn't an option, consider getting a roommate or moving into a two-bedroom apartment and adding a roommate to lower your monthly rent.
  • Review your belongings for big-ticket items you can sell. Do you live in an area with excellent public transportation? Consider selling your expensive, gas-guzzling car or getting out of your costly lease. Do either you or your spouse work at home, but you both own a car? See if you can help fund your savings by downsizing to one vehicle for the next year to save more.
  • Sell unworn jewelry and have broken pieces melted down for cash.
  • Skip vacations for a year, or even two! And during your vacation time, take on an extra job so when you head back to work you’ve earned a bit chunk to add to your savings kitty.
  • If your owning a home in the near future is a top priority, take a break from your retirement fund at work and redirect those funds into your savings account. (Only take this step if you are completely committed to reaching your down payment goal within a year or two at most since you lose the value of compounding those funds toward your retirement for the life of the account.
  • Direct all your tax refund and any annual bonuses into your savings!

Remember, this isn’t a forever deal. You’re not signing on for an austere life ongoing. It’s just temporary to reach a goal. Your real estate professional can help you get started by determining how much you need to set aside for your down payment.

About the Author
Author

Steve Hartung

Steve's background in Real Estate goes back to his purchase of his first Napa home in 1987. He successfully negotiated over 100 leases, contracts, and/or purchases during his 10 years with a National Corporation, as the Fleet and Facilities Manager. He completed the UC Davis Business Management Program in 1999, his Real Estate Appraisal and Valuation course requirements in 2002, has received his e-Pro designation in 2002, is a Graduate of the REALTORS Institute 2004, and has completed his Council of Real Estate Specialist requirements in 2005. He obtained his California Real Estate Brokers license in 2006. In 2007 he obtained his Certified REO Broker designation. Steve believes in a higher standard for REALTORS after obtaining his California Real Estate SALESPERSONS License in 2002, Steve made it one of his goals to acquire the experience, knowledge, and education to pass the very difficult California Real Estate BROKERS License Exam, May 2006 he was issued his BROKERS License and with the changing Real Estate Market Steve trained and passed the required courses to obtain his Certification as a REO Broker. Steve has a working relationship with a number of Banks and Lendors to assist with buying and Selling Short Sale and Foreclosure (REO) properties. Steve has served on a number Boards and Committees such as the Napa Chapter of North Bay Association of REALTORS, Local Government Relations. Steve's work ethic, dedication, compassion, and honesty are qualities his customers have grown to appreciate. He is a very involved father, and coach, as well as being involved in adults sports programs. He has a strong commitment to his clients, friends, and family. He enjoys their confidence when welcoming their referrals. Steve's personal hands-on approach is what his clients like most.