Ten Peaks Sotheby's International Realty Blog

Saving for Your Down Payment - Breckenridge Real Estate

FROM TRUILA- CONSUMER HANDOUTS

Research has shown time and again one of the greatest hurdles to

home buying is coming up with the, sometimes dreaded, down

payment. Here are a few softer practical strategies to help you clear

the hurdle and come up with the cash you need.

6 Steps to Saving for a Down Payment

1. Plan for progress – Your Dream Budget.

Saving isn’t all dollars and cents, it’s a little emotional. That’s why we

recommend finding a few visuals to remind you why you’re in the

saving game. They could be photos or a list of features of your dream

home. Whatever your focal point, we recommend storing it close to

your budget, wallet, or in the place you pay bills to remind you of what

you’re working for.

2. Slow your Spending – The 10-day rule.

The biggest enemy of spending is the impulse buy. So, for purchases

over $25 exercise some self-discipline and give yourself 10-days to

decide, Is this purchase for a real need or a want?

3. Avoid the Convenience.

Your mother was right, good things take time…and so do cheap

things. From coffee on the go to lavish meals out, most consumers are

paying quite a bit for convenience. Try to avoid your local convenience

stores and become friends with your kitchen to help your bottom line.

4. Drink More Water.

According to the National Soft Drink Association, the average

American Household spends about $850 annually on sweetened

drinks. In contrast, water costs just a penny per gallon. Do this and

you’ll start your life as a homeowner not only richer, but a bit healthier

too.

5. Track Expenses - Face Your Truth.

We scoured the net and all the experts agree, the only thing more

powerful than creating a budget is actually reading and tracking it. We

suggest you schedule some time with yourself every week to face the

truth about your spending habits and find new ways you can save.

6. Eliminate the excess spending.

Locate the excess in your budget and slash it. Trade the gym for home

workouts, expensive movie nights for checking out free videos from

the library, and keep an eye out at the end of each month for services

you aren’t using.

Serious Sources for a Down Payment

 

These suggestions aren’t for the faint at heart. But, if you’re serious about saving up these sure fire moves will help you reach your goal.

Payroll Deductions: One of the best ways to

save money is to hide it from yourself. Payroll

deductions or allocating a piece of your direct

deposit to a special savings account can be a

great way to trick yourself into saving.

Tax Refund: You know it’s coming, why not

use it toward your down payment? If you’re

really serious about home ownership, talk to

an accountant about tax planning to make

sure there is a little green at the end of the year

to help you with your down payment.

Borrow from the 401k: It’s not losing your

retirement, it’s more so using a piece of one

investment to make another. First-time

homebuyers can one-time borrow up to

$10,000 from their Individual Retirement

Accounts (IRAs) without paying the early

withdrawal fees. Be sure to talk to your 401k

or IRA administrator to find out how it will

impact your retirement.

More Work: Yes, we said it; more work. If

you’re serious about reaching your down

payment goal, consider spending a few hours

working part-time. 10 hours/ week at $10/hour

all year will get you $5200 closer to your goal.

Breckenridge real estate offers a wide variety of choices when it comes to finding the right property. Luxury homes, mountain cabins, townhomes, condos and acreage are available for home-buyers looking to settle in this wonderful mountain town. To buy or sell in the Breckenridge Real Estate area or any other area in Summit County, contact the experienced real estate professionals at Ten Peaks Sotheby's International Realty.

If you would like more information about buying or selling in Breckenridge or any other area in Summit County, contact the experienced local real estate professionals at Ten Peaks Sotheby's International Realty. For Free listing alert updates check out our website at http://www.tenpeakssothebysrealty.com/