Saving Money For A Home
Unlike generations before us, saving a minimum of 20% for a home downpayment is no longer a must. Now you can secure a home purchase with as little as 3% down. A huge difference! So, for every $100,000 home purchase price, you need only save $3,000. You’ll also want to allow another $2000 going towards closing costs.
Lower Your Interest Rates
Are you paying high-interest rates on your credit cards? What’s the quickest way to lower those high-interest rates? Consider searching for a balance transfer option.
Many credit companies offer 0% APR for up to 18 months with some offering rewards programs as well. By taking advantage of a 0% APR, gives you additional time to pay down the remaining principal balance and instantly lowers your monthly payments.
Another option is using a debt consolidation loan. This will let you combine several of your high-interest loans into one personal loan at lower interest rates.
So instead of making several payments at 20% or more interest, you can simply make one payment at 10% or lower interest. Not only does this save you a considerable amount of money every month but you’ll also pay down your debt faster.
The key in any credit scenario is to avoid adding additional charges to those cards.
Call your credit card companies and request a rate reduction. You’ll be surprised at how many will be willing to negotiate with you. You’re chances are better if you have a good payment history with them. The longer you’ve had the card, the better position you’ll be in to negotiate.
Automatic Debt Repayment Plans
These are particularly attractive for student loans as they offer you a lower interest rate when you sign up for automatic monthly billing. Not only will they save you money every month, but they’ll also make sure you won’t miss a payment or incur a late fee.
Cut Down On Cable
Ok, now look, do you really need 500+ channels? Most of us simply visit the same channels over and over again. When my husband and I decided to cut down on our cable bill, we realized we only had five favorites.
Our cable provider, Spectrum, offers a much cheaper option of only 10 channels of your choice at $29.99/monthly. So we had to come up with another five.
This program saves us an overage of $75/month and we still got to keep all of our favorites such as HGTV, History Channel, ESPN and others.
We love movies so we added Hulu for just $5.99/mo. For the cost of an Amazon Prime membership, $119/year, we also have access to their movie channel.
The best savings come from eliminating your dependence cable companies altogether. Did you know that 90% of costs charged to you as a consumer by the top cable companies is pure profit for them? Here’s a story of how this one couple cut the cord from cable and how they did.
Many well-intentioned people sign up for fitness club memberships at the start of every new year. If you have a membership that you’re not using at least twice a week, seriously consider canceling it.
At this rate, you’re just throwing money out the window. It will be cheaper to work out at home for you than to pay $120/year on something you barely use. Cancel them now, and wait two to three months. If you really miss them, you can always sign up again.
The “Little Extras”
Speaking of cutting the cord, consider cutting down on those daily Starbucks. I used to make Starbucks a daily “must-have” until I realized how much I was spending on my “fix”. I also worked there as a barista while in college. Believe me, if I can do it, you can too!
Living in NJ, I spent approximately $4.86 on a Latte Grande twice a day. That’s 9.72/day or $68.04 per week! That same $$68 a week translates to $272.16 a month. So, do the math and then determine how much that cuppa is really worth to you.
If you still need your caffeine, consider Dunkin Donuts they are considerably cheaper and taste pretty good as well.
Look for other areas where you can cut back on such as magazine subscriptions, online subscriptions such as StitchFix. StitchFix charges you full price for everything including accessories. What you’re really paying for is the convenience of delivery at your door but you could get very similar designer selections as Marshalls at 50% or less.
Look around for other subscription services you can cut out. There are several apps out there that can help you get a handle of your expenses. One of the time TrueBill. They can review your purchase history and look for unused subscriptions and other recurring charges, and help you cancel them.
Your ‘Two Cents’
Have you tried any of the suggestions above? What was your experience? Want to add another suggestion? Feel free to share here below.
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About Annette Hibbler, Keller Williams Realty Livingston
Annette is a licensed Realtor in Michigan since 2015 specializing in cities within a 30-mile radius of Brighton, MI. These include Novi, Farmington Hills, Highland, Livonia, Hampton and everything in between. Prior to obtaining her real estate license, Annette and her husband were full-time investors. Purchasing distressed properties, rehabbing, and selling homes. They both have extensive experience with buy and hold rental properties. Annette’s mission, desire and goals is to assist all parties in accomplishing their real estate goals as well as empower her clients through exceptional service, creating extraordinary results.