Making Lifestyle Budget Cuts to Afford a Mortgage in Encinitas

First time homebuyers often say the hardest part of buying a home is saving enough money for their down payment and closing costs. And when you consider all the extras, like maintenance costs, taxes, and insurance, it can seem downright overwhelming.

If you’re planning to buy your first home in Encinitas, and are worried about saving the money you need, there are a few lifestyle budget cuts you can make.

Develop a strategy

The first step you should take is developing a strategy. What many people find successful is diverting a chunk of your salary into specific savings accounts. This way, the money isn’t sitting in your bank account, tempting you to spend it on things other than expenses for your new home.

Trim the Fat

Next, take a close look at your monthly expenses and determine what you can live comfortably without. Many clients have told me that they eliminated cable TV in favor of video streaming services like Netflix and Hulu Plus. These services cost literally a fraction of what most people pay each month for cable television, and provide thousands of hours of content.

Another common money-saving strategy people have done is eliminate their morning caffeine fix. Many of us religiously grab a coffee on our way to work in the morning, and those lattes can quickly add up. Getting a travel cup and making coffee at home in the morning can help you get your needed caffeine, and help you save for your new home.

There’s an App for That

I’ve mentioned budgeting apps before in previous blogs, and I cannot recommend using them enough. They provide a great resource for monitoring and managing your budget. Many of these apps, like Level Money, are even totally free!

Bike it!

Take a look at your weekly expenses, and there’s a good chance that gasoline is near the top of the list. With gas prices rising steadily, take advantage of our gorgeous weather and bike whenever possible. Riding a bike is great exercise, and the money you‘ll save on gas can go directly into your house savings.

Hit the Books!

There are millions of money-saving tips to recommend that I don’t have room to mention. My biggest recommendation is seeking out some of the most popular personal finance books and absorbing the information in them. Books like Rich Dad, Poor Dad by Robert Kiyosaki and The Total Money Makeover by Dave Ramsey are high on the list, but there are literally thousands to choose from. And the most popular ones should be available at your local library, so you can follow their advice without spending a dime!

By Linda Moore

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