5 Tips for Budgeting for a Downpayment
Saving for a downpayment is one of the most important things you need to start investing in real estate.
But if you’re like I was and you’re not good at saving…
This could be the one thing that’s holding you back.
So, in this email, I want to give you 5 tips to saving and budgeting for a downpayment…
And also share some things I’ve learned along the way.
So let’s dive into it…
1. Start a side hustle
There are two ways you can increase your nest egg.
You either spend less or make more.
I hate restriction so I prefer the latter.
That’s why starting a side hustle is my first suggestion.
The truth is, there are a lot of ways you can use the skills you have to make money on the side.
For example, back when I was first starting out…
I offered to be an assistant for the realtor I was working with.
And in exchange, he paid me each month and would also share some insights about investing.
So it was a win-win.
2. Decrease your spending
As much as I hate to say it, sometimes you need to pull back on unneeded expenses.
One thing I like to do is to track all of our spending.
At the end of each month, I take all of our expenses and identify what we’re spending money on…
What we don’t need…
What we do need to spend money on…
And then I can see what’s going out, and what’s coming in.
That way I can have a better idea about when we’ll have enough for our next downpayment.
3. “Overpay” your rent
This one is simple.
All you have to do is purposefully pay more than your rent.
For example, if your mortgage is $1200/mo…
Pay $1500/mo and put that extra towards a nest egg that you could put towards repairs or renovations.
4. Have money go to a savings account you can’t touch.
A great way to remove the temptation to spend money is to have money automatically sent to your savings account each month your paid.
This way, you don’t even see it.
Instead, you see what drops into your main account after the savings are taken out.
5. High yield savings account
My last tip is to make sure you’re putting your downpayment where you can actually access it.
For me, I use Ally Bank and Whole Life Insurance.
I like whole life insurance because I can use it to take out a loan against itself.
Now, it would take me forever to explain how that works…
And if you want me to show you how that works, reply and let me know…
But the point is, you want to put your money where you can easily pull it out when you’re ready to make that downpayment.
So, those are my five tips for saving up a downpayment for your first or next property!
If you have questions about this…
P.S. If you already have enough for a downpayment but you need help getting your first property…
That’s one thing I’ll help you with inside the Lady Landlords Mentorship.
To learn more about it, just tap the link below and book a call: