If you need help saving for a down payment, there are a few activities you can skip out on that will help tremendously.
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Discretionary income means different things to different people. You may have more of it now than you’ve ever had, but if you’re saving for a big-ticket item—like a down payment—here are some expenditures you should still consider skipping out on.
Your daily Starbucks coffee run. If your daily Starbucks coffee costs $3.65, for instance, you’ll save nearly $1,000 over the course of the year if you make your own coffee instead. If you’re a first-time homebuyer and you’re using an FHA loan and paying 3.5% down (i.e., $3,500), making that change alone will have you well on your way to covering your down payment.
Your daily lunch out. If your daily lunch routine is to grab a salad and a drink for, say, $5.50 or $6, you could save as much as $1,500 per year if you just make your own lunch and bring it to work. Also, if you have a daily afternoon snack routine that involves a granola bar and a bottle of water, you can save as much as $500 per year if you skip out on that.
Weekly happy hour with your co-workers. Going to happy hour means you’ll usually end up spending between $10 and $50. This means you can save as much as $2,500 over the course of one year by skipping it.
If your daily Starbucks coffee costs $3.65, for instance, you’ll save nearly $1,000 over the course of the year if you make your own coffee instead.
The dry cleaners. There are plenty of ways to save on dry cleaning. You can buy special mesh bags to put your garments in and wash and dry them yourself on a light cycle—your work clothes don’t get that dirty anyway! If you have to wear pressed shirts to work, try purchasing the wrinkle-free kind. That way, you can wash them at home and give them a quick ironing yourself.
The car wash. The average price of a car wash is about $7 to $10, so washing your car at home instead will help save another nice chunk of change.
Your weekly grocery run. Obviously I’m not saying you should skip this, but if you save $10 per trip, that adds up to $500 per year.
The gym. The average monthly payment for a gym membership is $54, so if you want to save money but you still love to workout, try canceling your membership and working out at home like I do. All I need is a few YouTube videos and my own set of weights. Sure, I paid some money for them, but I have them for life.
The movies. A movie ticket usually only costs between $7 and $10, but if you add in snacks and drinks, that can really add up.
If you have any more questions about this or any other real estate topic, don’t hesitate to reach out to me or browse the rest of my video library right here on my website. I’d love to help you.