Buying a house is one of the largest purchases you will ever make. Financing a loan will cost you thousands and thousands of dollars in interest over the life of the loan. For many people, buying a home in cash would be a way to keep more cash in their wallets, but saving that kind of cash sounds tough! It doesn’t have to be! Here are savings tips to help you buy your Long Island house in cash!
Why take on an expensive mortgage payment if you don’t have to? Imagine being able to quickly and easily buy a home outright, having it in your name from the very beginning and creating instant equity! The thought of saving up enough money to do this might seem overwhelming, however, people do it every day! Here are a few savings tips to consider if you want to buy your Long Island house in cash!
Get An Accurate Snapshot of Your Spending
In order to save your money, you have to know how you are spending it. Immediately start keeping track of your purchases and categorizing them as needed. There are many apps out there that can help you with this. Mint, PocketGuard, and GoodBudget are a few of our favorites.
Determine How Much You Will Need
Sure you will need to pay for the house itself, but what about repairs, closing costs or administrative needs? There will also be costs to have utilities turned on and possibly the need for new furnishings that fit the space. There are often many costs that pile up, causing new home buyers to spend more than they had budgeted for. Be proactive and plan for these “unplanned” costs ahead of time,
Make A Plan
When saving your money to buy a home in cash, it’s a good idea to really crack down on your spending. Make notes of what is absolutely a necessity for survival vs. the things you simply enjoy having. Try to eliminate as much frivolous spending as possible. By cutting out the morning coffee, snacks at 7-11 and lunch with your coworkers, you will be surprised at just how much you can save. Do the math to determine how much you will need to save and how long you have to do it. How much will you need to set aside each week? Is your plan realistic? When creating your plan, make sure your end goal is attainable. If your goals are too lofty or out of reach, you will set yourself up for disappointment.
Ways To Save Even More On The Sale
Buying a home in cash will likely provide you with better negotiation power. Many sellers love the idea of closing right away, without having to wait on the lender’s red-tape. In fact, many sellers are willing to pay for this convenience by giving you a break on the price. When you choose to purchase your house directly from a professional home seller, you will eliminate agent commission and will be able to take advantage of our local real estate knowledge. By purchasing direct, you can ultimately save thousands of dollars.
Don’t Forget To Live
When you go into “save mode,” you might become so laser focused, that you lose sight of having fun in your day to day life. Try not to wind yourself up so tightly that you aren’t able to enjoy the smaller things. Make an effort to live with balance, and not feeling too guilty when you do spend money. While you might have given up eating at restaurants for the time being, you could still opt to treat the family to ice cream or order in a pizza and a movie instead of going out. There are many ways you can save money without depriving yourself completely.