Ways To Save Money Before You Buy Your First Home

by Gema Smith 11/24/2019

The factor that has the most impact on your home search is your finances. You’ll need to save a significant amount of money. It’s not easy to save when you have continuous monthly bills and responsibilities. Read on for tips on how to get your finances under control in order to save the amount of money it takes to buy a home.  


Do A Budget  



Once you have decided to buy a home, the first thing you should do is take a good look at your finances. A budget is critical when you buy a house because it tells you how much you’ll have to spend on your mortgage. Doing this ahead of time will allow you to maximize your income and make adjustments ahead of time as needed. Don’t forget that even though you’re buying a home, you still need some savings in addition to all of your other monthly expenses. Your budget should be outlined as follows:


  • Necessities
  • Monthly utility spending 
  • Insurance bills
  • Entertainment expenses
  • Grocery spending


Basically, you want to write down how much money is coming in and where all of the money is going. That’s a budget in a nutshell. See where you can cut back. What you’re left with is the amount you can save each month. You may want to do this on a percentage basis rather than a flat dollar amount. 


Get A Separate Account


The most straightforward things to do when you start saving for a home is to put all of your money for your house fund into a separate account. This way you can automatically transfer money in, and you’ll be less likely to spend any of the money if you don’t see it.


Sacrifice The Small Things


Can you take some hand me downs for your kids? Maybe you can start packing a lunch for work instead of buying lunch. Can you cut the cord on cable? It may be hard to sacrifice small luxuries, but these expenses can add up. If you cut these out of your budget, you’ll have a little more wiggle room to save for a home purchase. You’ll be surprised how much money you can save just by doing little things. Your morning latte is probably around $5. You could save at least $25 per week by merely making coffee at home! That’s a saving of over 1,200 per year!   


While saving for a home can seem overwhelming, if you take it in small chunks, you’ll be see the results of your efforts rather quickly. 


About the Author
Author

Gema Smith

Gema S. Smith has been an influential pioneer in the luxury real estate industry for over 30 years. With a reputation for providing first-class service and garnering impeccable results for her clients, Gema’s accomplishments have earned her mentions in San Jose Magazine as well as two State of California Senate Certificates of Recognition. 

Unapologetically persistent, tenacious in her negotiation and passionate about developing genuine trust with her clients, Gema brings her best-in-class service and award-winning approach to The Agency, with a focus on the high-end market of Silicon Valley. Previously, Gema served as a Broker Associate with Intero Real Estate Services in San Jose, where she was a consistent top producer and recognized as a Top Listing and Sales agent for the company’s 15 corporate offices. Knowing that every buyer and seller has their own unique story to tell, Gema is proud to play a role in her clients’ ongoing narrative and represent their best interests in what is often the biggest transaction of their lives. 

Gema has been an active member of the real estate community since 1987, getting her start in the loan business before obtaining her real estate and broker’s licenses. In 2002, she opened a real estate brokerage and loan company which she ran successfully until 2008, when she chose to focus her efforts on real estate sales full-time. Gema is a long-time member of the Santa Clara County Association of Realtors (SCCAOR) and California Association of Realtors (CAR), as well as a Certified REO & SHORT SALE Specialist with The Five Star Institute. She is also a two-time Santa Clara County Chapter President of NHORA (National Hispanic Organization of Real Estate Associates) and currently sits on the NHORA National Board of Directors. 

A passionate philanthropist, Gema sits on the Board of Directors for the Jose Valdes Math Institute. Her commitment and dedication to the advancement of educational opportunities to underserved communities defines her character. In her spare time, Gema enjoys gourmet cooking, entertaining family and friends, wine tasting, reading, jogging and traveling.