Dreaming of owning your place is inevitable since you desire more comfort, privacy, and a sense of ownership that you can never get when you are renting. You may be married and have kids, but the dream to own your apartment or house should not stop until you can finally move to your new place. If you are single, making certain lifestyle adjustments may be the best way to realize your dream to settle in your place finally. Whether it is a long-term or short-term goal, saving up a down payment is achievable with the right dedication and strategy.

Here are some tips to help you finally set your eyes on your prize and started setting aside money for a house down payment.

Understand your current financial situation.

Before any effort in saving money regularly, have a personal assessment of your current individual situation. You can do this by creating a spreadsheet plotting how your money is budgeted. You may want to get specific information on your daily expenses, credit card debts, existing loans, and rent, among others. Consider a timeline prioritizing credit card debts first as they have a strict policy of not allowing individuals to apply for a mortgage if they have existing debts.

Be clear on the amount you want to save for a down payment.

Ambition is good, but we need to stick to real facts first to work our way up and reach our goals. After considering your current budget, how much can you save up for a down payment every month? Ask how much is feasible in your current situation. No matter how small the amount is, you can always reach your desired savings. But for how long? Also, as the money accumulates, it becomes more significant. Where will you put your saved amount then? Try to answer these questions first to set the direction of your savings plan.

To save up more, you have to make specific changes in yourself and spending, which leads us to the next item in this list.

Reevaluate your lifestyle and make necessary changes to your budget.

It’s time to flex your budgeting muscles to accommodate your new goal of saving up for a down payment. Upon listing how much money you spent every day, you will be surprised to know certain toxic spending habits that you may have to change temporarily. Most people make a temporary stop on these activities to save more.

• Taking a break from your gym membership
• Decreasing the number of eat-outs in a month for special occasions
• Lowering the amount for clothes
• Cutting back on shopping, especially on branded items
• Ending the cable TV subscription.

Consider momentarily stopping on your retirement savings.

Yes, some experts advised us to start on our retirement savings as early as we can. However, if you are saving up for a down payment, you may put your retirement on the back burner first so that you can concentrate on your most recent goal. Redirect those funds to your down payment savings to shorten the time you can finally reach your desired savings amount. You can always get the recommended 15% monthly retirement savings anyway after you have already moved into your new house!

Cashing out your retirement savings may always sound convenient.; No matter how tempting it is, always consider setting aside money to achieve your retirement savings’ long-term growth. You may also have trouble with taxes and early withdrawal policies.

Take a side hustle to earn more.

You don’t have to make a significant loan on a down payment or mortgage. Loans should be your last resort in pursuing these goals. Of course, loan agencies for mortgage refinancing will always be there for whoever wants convenience in getting their desired amount. Stick to your resources and be open to the idea of taking a side hustle to save up for your house down payment.

Do you have special skills to let you earn extra income? What about working part-time as a Lyft or Uber driver? Do you know another language? Tutoring jobs online enable competitive individuals to gain more. Some people also make extra money taking care of pets while their owners are away. Be open to these ideas and work harder to earn more cash.

You may also consider renting one of your bedrooms to another renter who will share the rent and utilities. Working from home has been gaining significance lately due to the pandemic. Why not discuss this option with your boss! Aside from having more relaxing time, you will also save more on commuting costs.

Saving up for a down payment takes a considerable amount of time, effort, and patience. You may have to sacrifice many things in your budget and cut back on your luxuries to make room for extra money. No matter how hard your efforts are, always think long-term. Think that whatever sacrifices you make today will affect you positively in the future.