​3 Ways to Save Money Faster So You Can Start Investing Sooner

One of the things I love most about investing in real estate is that just about anyone can do it; you don’t have to be rich or even anywhere near that to get started. Average Joes and Average Janes do it all the time, even if they don’t have a ton of cash in the bank.

That said, you do need to save enough money to cover things like a down payment and a few months worth of mortgage payments to protect yourself in the event of a vacancy. If you don’t want to use a mortgage and plan to buy your property outright, obviously you’ll need to save even more. In both cases, you’ll also want a cash reserve to cover unexpected repairs and other expenses that pop up.

This is the part about investing in real estate that can be really discouraging for newbies. It takes awhile to save up that kind of cash, and it’s hard to wait, especially if you’re already browsing listings in your market and you see a property you want. But wait you must, because diving in before you’re financially ready can have disastrous consequences.

If the waiting is just too unbearable, though, there are a few things you can do to save money faster and speed up the process. A word of caution: you’ve got to be committed. You’ll have to sacrifice and work hard to reach your goal in a shortened timeframe. But just remember, the reward will be worth it.

Tip #1 - Cut All Unnecessary Expenses

Here’s that sacrifice I’m talking about. If you really want to save, you’ve got to eliminate all the expenses you can. Cable, Netflix, Spotify Premium, dining out, fantasy football buy-ins, manicures - all of these are unnecessary and are keeping you from meeting your goal sooner. The time to tighten those purse strings is now. Take a look at your monthly expenses - you’ll be surprised at how much goes to entertainment and other non-essentials. Stop wasting money on them.

Tip #2 - Evaluate All Other Expenses and Set a Budget

Once you’ve cut all the unnecessary expenses, you need to reevaluate your entire budget. Even trimmed to just the essentials, I bet there are some areas where you’re overspending. Do some comparison shopping for your insurance and see if you can get a lower premium by changing your plan or provider. Same goes for your cell phone and internet provider. Don’t be afraid to ask for lower prices for these services; you may be surprised what they’re willing to do to keep you as a customer. After you’ve gone over everything, set a budget for yourself and stick to it.

Tip #3 - Increase Your Income

If you want to see an even bigger jump in your savings, you need to start making more money. If you think you’ve earned a raise, don’t be afraid to ask your boss for one. You should also consider taking on a part-time job, or doing some sort of side gig that will earn you cash. A good place to find quick gigs is Craigslist or similar sites. There are always people who need help moving, or writing their memoirs, or their kid needs tutoring. Speaking of Craigslist, you can also take inventory of your stuff, and see if there’s anything worth selling. Maybe you’ve got a treadmill that’s collecting dust, or some old jewelry you don’t wear. Boom! Fast cash!

Don’t get discouraged because it seems like it’s taking forever to save up for you rental property. You will reach your goal, and using the tips above will help you get there even faster you can start reaping the rewards of investment.