Last night on my first podcast, I outlined all the tricks I used to save money enough to buy my house for cash. Here is a recap, and it works! All you need is some self control and a bit of determination.
1 – Pay off credit card debt – all of it, as fast as you can. Saving money is just too hard to do if you are making monthly interest payments on credit cards. Feel free to use the cards, many of them offer a rewards program to get free gift cards or groceries. Just be sure not to overspend and pay the bill in full each month.
2 – Trade in the new car for a reliable used vehicle. I found 2 cars for under $1000.00 for both. If you have 2 cars and pay $250.00 per month each, that’s $500.00 a month in your pocket.
3 – Budget your expenses, save everywhere you can. Keep utility bills low, buy groceries, clothing etc. ON SALE ONLY and use coupons to boot! Take an allowance from your weekly paycheck and spend only that. Brown bag your lunch instead of eating out….saves easily $50.00 a week.
4 – Get a second income, if your spouse can’t find work, consider selling crafts or babysitting neighborhood kids. Grow a garden if you can…even a container garden on a city balcony can help save on groceries.
5 – Look for a distressed property…abandoned, fix-it-upper, desperate seller. Learn to renovate or build on by yourself or with the help of friends. Contracting work out can cost you 3 times what you could spend doing it yourself.
6 – Squirrel your money OUT OF THE BANKS. Let’s face it, banks have been known to suddenly close without warning, tying up your cash until the lawers et al get it all sorted out…if they ever do!
Believe it or not $25,000.00 is all you need to start looking for a home. I personally saved about $2000.00 a month by following these tricks and in under a year, was handing over a down payment on my house….CASH! There is no better feeling than knowing you will never write another rent cheque or make another mortgage payment. This way your home really is YOUR home.