Are you getting ready to purchase your very first home? Congratulations! Just be prepared to put in quite a bit of work. Not only to find your perfect abode, but also to save up for a house. Thankfully, there are a few ways to increase your savings rather quickly so that you can get closer to fulfilling your dream of being a homeowner.
The Fastest and Easiest Ways to Save Up for a House
It doesn’t have to take years and years to save up for a house. Follow these four steps and you’ll be socking more money away each month than you even thought possible!
1) Choose the Right Savings Account with an Online Bank
There are a lot of savings accounts that you can choose from. If you want your money to grow so that you can save up for a house more quickly, you should stick with accounts that offer a high interest rate. While a lot of brick-and-mortar banks are offering low interest rates these days, you might be pleasantly surprised to find that interest rates at online only banks such as Ally Online Bank, are much better.
Plus, online banks come with a host of other perks, such as:
- being able to do your banking from remote at any time of the day or night
- easily transferring your funds between accounts whenever necessary.
2) Lower Your Monthly Expenses
Another way to grow your money more quickly to save up for a house is by reducing the amount of money that you spend every month.
You might, for example:
- eat at restaurants less often and prepare your meals at home;
- start washing your clothes in cold water in order to save energy whenever you do the laundry;
- skip use of the dryer and hang your clothes to dry to further save on your utility bill every month;
- changing the temperature in your home by just a degree or two can also make a difference;
- turn your hot water temperature down to save even more money.
All of these simple little steps will really add up. You can put more money aside, rather than use all of your income to pay your monthly bills.
3) See If You’re Eligible for Savings on Your Taxes
Finally, you can look into the various tax credits that are available to help you save some extra money. For example, you might be eligible for the saver’s tax credit if you are a low to moderate income taxpayer who is also saving up for your retirement.
If eligible, you could claim this credit for retirement accounts that include:
- Simple IRA,
- and Roth IRA…
…as a few examples.
Or, if you are a low to moderate wage earner, you might even qualify for the Earned Income Tax Credit. This could help lower the amount of taxes owed and potentially get you a refund. Every little bit of savings adds up!
There you have it; there are several fast ways to save up for a house so you can buy your dream home sooner rather than later. Just be consistent in your efforts, make some smart moves, and be patient. All of your efforts will pay off in the long run!
AUTHOR LaTia Longuemire
My name is LaTia Longuemire. I enjoy writing, singing, and cooking in my spare time. My passion is helping others. At this stage in my lifetime, I'm primarily focused on my children. They are everything that keeps my world spinning.