Old-Fashioned Ways to Come Up with a Down Payment for Your First House!

As I look back, I wish that someone would have given me just a few of the following ideas on “how to save money for a down payment on your first house – the short course”.  I took the long course — and by doing so, I missed out of a couple of years of appreciation in the area and probably lost a few tax dollars as well.

Here are just a few things that a you can do to help save money for a down payment on your first house.

Ask your parents.

If they say “yes” stop reading now.  No need to read further.

Put extra money in the collection plate this Sunday as a way to say “thank you” to the Almighty for giving you such great parents.

If they say “no”, read on.

Ask everyone who is related to you and you know by name.

You can probably skip introducing yourself to your long lost uncle who left the family years ago because of a fight with your parents or whatever the story is.  Keep it to the immediate family.  The people you know and love.

And hopefully love you.

Lots.

Start with a goal.

Be specific.  “Buy a house” is not a goal, it is a hope. “Save $3,500 for a down payment on a house by December 31, 2009” is a goal.

Create a separate account for your down payment savings.

Try to make it as unaccessible as possible once you have put the money in.  A safe deposit box with dual fingerprint identification and retina scanning equipment = good.

A glass piggy bank on top of the refrigerator = bad.

Find ways to cut corners and deposit money into your down payment savings account whenever you can.

Once you have a goal (remember, be specific!) and a partner to work with on that goal, you will be amazed how much money you will be able to save.

Skip Starbucks when you can.

Rather than go to Chili’s for your weekly date night, go for a walk in the park or something else that doesn’t cost money.

Wear your clothes and shoes a little longer.

Take public transportation.

Develop an allergic reaction to anything that is plastic — namely credit cards.

Buy a newspaper only on Sunday — when they are packed with grocery store coupons.

Iron your money.  I am only half joking.  I have never met anyone who irons their cash and who is not a tightwad. I have also known more than one person in life who irons their money.

Put your birthday money directly into your down payment savings account.  Yes, even the $5 that Grandma sent you in that flowered card just like she does every year.

Sell your skateboard but not your snowboard.  Some things are more important than others, sell the stuff that you figure you can live without.

Get a side job.

Once you have gotten control of your spending, the next step is to pick up a few bucks by actually working more/harder/longer.

This is probably the easiest way to get money.

If you can work overtime at your job, do it.  Not so much that your partner wants to leave you — but at least 10 hours a week.

If you can’t work overtime at your job – time to find a new job in addition to your current one!

Rather than watch college football all day on Saturday and professional football all day on Sunday, get a side job at something you enjoy and are good at.  Remember, you are saving up for a house!  This isn’t a new XBox that we are talking about.

Realize that once you have actually accomplished your goal and saved enough money for the down payment, the expenses have just begun.

That second job that you are working?  Hope you followed the advice and found one that you enjoy and are good at — because you are going to need to work at it for quite a while AFTER you have saved enough money for the down payment.

Why?

Well, I won’t go into specifics exactly — but I will say that I have never moved into a house where my wife didn’t want a new couch!