There are so many benefits in owning a home that not even these hard economic times can deter its appeal. Saving for a house, on the other hand, can be challenging for many apartment dwellers and tenants. The truth is it is difficult to save for a house, when a big chunk of your income goes toward rent. The cost of renting can make the idea of owning a home seems like a fantasy, but saving for a house can be well within your reach.
Follow these five (5) tips to help save up for a house while renting:
Budget first, save later:
Making a list of your expenses and working out a budget seems like the oldest financial advice in the book, probably because it is. People should take the time to learn where their finances are at, and then save as much as they can comfortably afford.
Stick to your savings:
A weekly savings account contribution of $50 adds up to $2,600 after a year. After just five years, that gives you $13,000 to put towards purchasing your own home.
Downsize:
Move to a cheaper apartment for a few years. You’ll save money on rent that could be put to better use, like buying your home. A $100 to $200 savings per month goes a long way in giving your housing fund room to grow.
Start negotiating:
Consider negotiating rent with your landlord or property manager. Emphasize to them your high value as a reliable tenant who pays his/her rent ahead or on time, and that it might be hard to find a new tenant of the same quality.
Roommates:
Find a roommate through friends, internet sources, social media, or newspaper advertisements, to cut down on your $1,200 monthly rental payment. Put your money saved toward your housing fund.