Saving for a down payment can seem overwhelming, but it doesn’t mean you have to stop having fun. With some creativity, you can build your savings without giving up what you love. Here are a few ideas to make saving enjoyable.
Turn Hobbies Into Extra Cash
Whether it’s crafting, photography, or fitness, think about turning it into a side hustle. You could sell handmade items online, offer photo sessions, or teach fitness classes in your community. Not only can this bring in extra money, but you’ll also spend time doing something you love.
Save Together with Friends
Saving doesn’t have to be lonely. Plan a yard sale with friends or neighbors and use the profits to grow your down payment fund, or start a “no-spend” challenge that encourages everyone to avoid unnecessary purchases for a month. Instead of going out, plan a weekly pot luck with friends and bring empty Tupperware to fill with leftovers. Make saving a competition with a fun prize or bragging rights for the biggest saver.
Use Rewards to Your Advantage
Everyday spending can work in your favor. Use credit cards or apps that offer cash-back rewards and save the rewards toward your down payment. Sign up for loyalty programs at stores you frequent. Just be sure to pay off your credit card balance each month to avoid interest or racking up debt, and aim to charge between 25%-30% of the total balance to keep your credit score up.
Sell or Rent Unused Items
Look around your home for items you no longer use but are still valuable. Selling old electronics, furniture, or even designer clothes can add to your savings quickly. Alternatively, consider renting out tools or equipment, like a lawnmower or power tools, to neighbors for a small fee. For instance, rent out your kayak on weekends when it is not being used.
Saving for a down payment doesn’t have to be a stressful or boring process. By tapping into your hobbies, involving your friends, leveraging rewards, and decluttering for profit, you can reach your goal faster than you think. Every small step adds up, and before you know it, you’ll be ready to start the exciting journey to homeownership. Contact your Ellason Mortgage Group loan officer to learn how much you may need for down payment and closing costs. The more you know in advance, the easier it is to set and achieve your savings goals!
