It might feel impossible to save a down payment while renting. After all, rent is expensive! And it’s not getting any cheaper. The national median rent for a two-bedroom apartment is $1,374.1 So, how in the world are you supposed to save a down payment big enough to buy a house when more of your money keeps going toward rent every year?
Don’t worry. It is possible, and you can do it. Here’s the best way to save for a house.
Follow a budget Budgeting shows your money who’s in charge (that’s you). It gives you the power to tell your money where to go instead of having to wonder where it went. It’s how you make any money goals happen—like saving for a down payment. Here’s how to make a budget that really works: Write down your monthly take-home pay. List your monthly expenses—including your monthly down payment savings goal. Make sure your income minus expenses equals zero. Track your spending (all month long). Make a new budget before the next month begins. If you’re new to budgeting, it might take a few months to get it right, but hang in there—you’ll be a budgeting pro in no time. And you’ll be amazed at how much you can stash away each month toward your down payment savings goal.
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