How to Save for a Home While Paying Rent

Saving money for a home while still having to pay rent can be difficult. However, it can be done. With discipline and sacrifice, you'll be holding the keys to your new home in no time. Use these steps to make the saving process easier.

Difficulty: Moderately Challenging

Instructions

1. Pay yourself first. You are your number one priority. Set aside a specific amount of money from each paycheck, no matter what. Take care of your expenses with what is left over. Have the money directly deposited into a savings account to avoid temptation.

2. Create a budget. You can make better decisions if you know where your money is going. Take charge of your finances by designating where your dollars should go. Keep your living expenses low.

3. Tighten your belt. Small savings add up to larger ones. Use coupons. Buy energy-efficient light bulbs. Pack your lunch. Know the difference between wants and needs. Get creative about ways to save money.

4. Pay off debts. Carrying credit card and other types of debt hinders your ability to save. Eliminating these bills will free up money that you can save. Start with the ones with the highest interest rates.

5. Earn extra cash. Get a side hustle specifically to raise money for your home. Sell things online. Write greetings cards. Dog walk or babysit. Just make sure to save all of what you make, without exception.

6. Seek funding. There are all kinds of programs out there that assist home buyers with down payments. This is especially true for first timers. Put in the time to search for one that fits your needs and qualifications.

7. Be patient. Saving money for a new home can take some time, but diligence pays off.

Tips & Warnings

• Paying off credit card debt and student loans will do more than help you build a nest egg. It will also contribute to a positive credit score, which you'll need to finance a home purchase.
• Don't fall for dubious rent-to-own property scams. These may seem to offer you a shortcut to home ownership by applying part of your rent to an escrow account, but all too often they're a way for unscrupulous landlords to overcharge you for rent without allowing you to build equity. Always check your landlord's record with your local Better Business Bureau.

Who Can Help Sponsored

• A Bad Credit Score is 598 or Below. Checking your own Credit Report won't affect your score! See instantly for $0 by Experian® www.FreeCreditReport.com