Saving A Down Payment For Your Lease-To-Own
If you’re like most people out there looking for a new home, you have several options when it comes to purchasing your home. Most people tend to rent or buy and while both these options have their pros and cons, there’s an alternative for homebuyers and that is rent-to-own in which case you rent a home for a certain amount of time with the option of buying after the lease expires.
The best part is a percentage of the monthly rent goes towards the purchase of the house if that’s the option you end up using.
Along with the typical fees you pay when you sign the contract, you’re also required to pay a deposit which if you don’t choose ownership, is forfeited and if you do choose to buy the home, goes towards the final purchase.
Saving money for the deposit doesn’t have to be hard and really if you’re trying to understand how to save money, figure out how to spend less. There are endless resources that are readily available for you to use to not only manage and track your accounts and spending habits but to help you learn about deals and discounts.
Step 1: The first step you need to take is to track your finances or create a budget and look at where you can compromise on some of your spending. Put your smartphone to use by installing apps like Mint, YNAB, and Clarity Money which were all created to show you an easy way to budget and save.
Step 2: Set up an automated savings plan at your bank. Allocate a percentage of the money you make to go directly into a savings account where it can accumulate quietly.
Step 3: If you’re shopping for a car, it’s highly recommended you choose a less expensive used car then worrying about higher monthly payments that aren’t necessary with a brand-new ride.
Step 4: Utilize your credit cards. It’s understandable the negative stigma behind credit cards but doing research and finding the right one for you and your spending needs can help you save money in the long run. It’s easy to accumulate points for purchases and most of them having sign up bonuses you can take advantage of too.
Step 5: If your income is low, you may be eligible to participate in an IDA or Investment Development Account program where your savings are matched. In return for you attending financial education sessions, you can receive at least $1 for every $1 you save. There are local programs for your area so do some research and see if your eligible to participate.
We also encourage small acts like cutting down on energy bills, buying secondhand and thrifting, cooking meals at home instead of going out and skipping that daily latte run. Creating these smaller habits will lead to a lot more savings than you think which is why setting up a budget and getting a good hard look at your habits can be so beneficial. When you factor in your future needs instead of your current wants, you’ll be surprised at how quickly you can save and finally get the home you’ve always wanted.
“I want my home to be that kind of place–a place of sustenance, a place of invitation, a place of welcome.” – Mary DeMuth