How to Save Money for a House While Renting

Do you spend most of your free time admiring the houses featured on New Jersey home builders’ websites? You’re not alone. New homes are particularly attractive to home buyers because they offer all of the latest features and innovations and none of the work that often comes with buying an existing home. These savings tips will help you accumulate enough money for a down payment if you’re ready to move from your rental, but your bank account needs an influx of cash to make your dream a reality.

Bank Extra Money

You could spend your income tax refund or bonus on a car upgrade or a new wardrobe, but it makes much more sense to leave those checks untouched in your bank account. Nonessential funds offer an easy way to boost your savings for your new home without affecting your budget. Add cash gifts, rebates, refunds and lottery winnings to your account too.

If you expect a raise this year, consider saving the extra amount. Simply increase the amount direct deposited into your savings account once you receive your raise.

Take Advantage of Direct Deposit

Saving is less painful if your employer allows you to split your direct deposit between your savings and checking accounts. You can certainly transfer money from your checking to savings account yourself, but it’s easy to forget to make the transfer. Unfortunately, when you do remember, you may have already spent some (or all) of the funds earmarked for your new house fund.

Make a Few Lifestyle Changes

Even small changes can have a surprising effect on your bank balance when you make enough of them. If you’re saving for a new home while renting a house or apartment, consider:

• Making Meals at Home: Pack your lunch a few times during the week and bring a mug of coffee or tea from home instead of buying a pricey drink from a coffeehouse on the way to the office.

• Cutting Nonessential Costs: After a thorough evaluation of your spending habits, you may find a few areas to cut. Are telemarketers the only people who call your landline? Get rid of it! Consider working out at home instead of the gym when it’s time to renew your membership, start a carpool to save money on gas or augment your wardrobe with consignment store purchases rather than pricey new clothing.

• Trying Free Options: Read your favorite magazine for free through the Flipster app offered by the Somerset County Library. Is your cable bill too high? There’s no need to subscribe to expensive premium channels when Sony Crackle, Popcornflix and others offer movies and TV shows at no charge.

• Staying Home: Spending less on entertainment and eating out means more money in your new home fund. When you’re ready to take a vacation, considering taking a staycation instead. Add the amount that you would have spent on a getaway to your home buying fund. During your week at home, take advantage of local parks or plan low-cost day trips in New Jersey.

Other Ways to Save More Money

Depending on how much you want to save and your spending habits, you may benefit from a few of these strategies:

• Choose credit cards that offer cash-back options.
• Shop around for no-fee checking accounts and savings accounts that offer the best interest rates.
• Give up smoking or vaping.
• Refinance student loans.
• Babysit for your friends’ kids for free and ask them to do the same when you’re ready for a night out.
• Ask your credit card company to lower your interest rate.
• Prepare a detailed budget and stick to it.
• Sell your collectibles or memorabilia.
• Install motion-activated lights and programmable thermostats to lower utility costs.
• Consider sharing your home and your bills with a roommate or family member to decrease costs.

When you're ready to discuss your new home budget and plans for purchasing a new home in New Jersey, we can potentially help! Country Classics has new home offerings coming out on a regular basis. Contact us to see if any of our new homes or building a home is right for you.

Sources:

Sony Crackle

https://www.sonycrackle

Somerset County Library: Magazines and Newspapers

https://sclsnj.org/read-listen-view/magazines-newspapers/

Popcornflix

https://www.popcornflix.com