Effective Steps to Save for a house in 1 Year | A Detail Guide

Having your own place to live is an unsaid dream that everyone has. Something of their own that they can call home is of great essence. But the greatest hurdle most first-time home-buyers go through is saving up for their dream home. Not just the down payment, but all the other costs associated with buying a home require strict budget planning and cost cutting. This guide from Scott Adlhoch will show you seven effective steps to save for your dream home in just 12 months.

7 Effective Steps to Save For Your Dream Home in 1 Year

1. Bring Down Your Rent:

A large portion of your earnings goes towards the house rent. Where it is a necessary expense, you can do your part to bring it down by doing certain tasks yourself. Most of the times, the landlord will include the cost of additional tasks like lawn-mowing or shoveling in the rent. By proposing to do it yourself, you can convince the landlord to reduce your rent.

As an alternative, you can also ask a favor from a friend or a close relative by moving in with them for some time. Share expenses with them and save up for that house of yours, you’ve been dreaming about.

2. Spend on the Essentials:

When you’re saving for a big purchase like a house, you have to be cautious about each penny that you spend. Rethink twice before making any purchase. Buy only if it's a necessity and avoid if it's just something that you want.

An expert tip from Scott Adlhoch, “Before you buy, ask yourself: Do I need it or want it?” If the answer comes in later, put that money back in your pocket. You’ll thank me later.”

3. Cut on the Small Expenses:

The small changes will reflect a great deal in your budget saving. Cut on those small expenses to get one step closer to your dream home. Reduce the number of taking out meals in a given week and try carpool to your workplace.

If you can make a cut on these small expenses, your savings will increase immensely. A word of advice from the Master himself is to go with the 50-20-30 rule where 50% of your income goes for necessary expenses(Rent, food, groceries), 20% for your savings and 30% for flexible purchases (movie, dine-out or things you need).

4. Take on Some Extra Work:

Do you have a hobby you’re really good at or maybe a knack for something you can do well?

Don’t sit there and take on some extra work. This additional hustle of 12 months will be worth it when you’ll be sipping on your favorite beverage in the comfort of your own home.

5. Make Some Adjustments:

Make some changes and adjustments wherever possible. Look for discount deals, coupons and make use of the reward points where and when you can. Divide your saving amount by 12 and put aside that money in the bank account.

But hey, don’t you stop there. If you can save some more, do so! It’ll give an additional boost to your savings and help you along the way.

6. Sell the Stuff You Don’t Use or Need Anymore:

You can save up-to $800-$1200 by selling the items you don’t need or use anymore. Dive into your closet and look for the things you might have bought on an impulse but rarely used. Instead of just sitting there, it can help you! Just make a list of these things, draw up an estimate and put it up on sites like Craigslist, Tradesy or Facebook Marketplace.

You may be surprised by the easy process and additional money showing up in your savings account.

7. Eliminate Extravagant Entertainment:

Save multiple dollars by eliminating lavish entertainment from your life. Rather than going out for movies and dinner, make some popcorn and stream your favorite shows and movies online.

Don’t practice boredom. Instead, make a smart move when it comes to weekend entertainment plans. Catch up with old friends or enjoy the nature in all its glory by taking a walk around the town.

In words of Scott Adlhoch, “ Move smartly for 12 months and you’ll be making the move to your new home shortly after.”

We hope that you find these effective tips to work in your favor. For additional assistance, you can contact the Ace Realtor himself.