When it comes to buying a New Orleans home, you’ll need to be able to save for a down payment. This can be a challenge for lots of people, especially single home buyers. But no worries, we’ve got some saving tips that will take you from tenant to homeowner before you know it.
Set up a save for down payment fund
As you start saving, consider putting your down payment money into a savings account or money market account so that it earns interest every month. While interest rates may be low, every little bit helps.
PRO TIP: Keep your down payment money in a separate bank from the one you use daily and don’t order checks or get a debit card for the account. Make it hard for you to dip into those funds!
Reduce your expenses
- How quickly do those lunches out and cups of coffee from the neighborhood shop add up? Eat out less and cook at home more.
- Review your cell phone package. Are you paying for way more data than you use each month? If so, change your plan and put the savings into your down payment fund.
- How many streaming services do you use? Cutting even one of them out can add some coin to your funds.
- Workout for free. Sure, you love your gym, but you can accomplish most of your exercise for free in one of our many parks or at home with a library of YouTube work videos (we’re kind of partial to Yoga with Adriene)
- Shop your insurance around. If you have a good driving record, you may be able to save on monthly premiums by shopping around for a better rate.
- Reduce energy usage. Those big electric bills can eat into a budget right quick, so pay attention to how you use energy. Turn off lights when you leave a room, adjust the thermostat to a higher setting during the hours you’re not home, and turn off/unplug appliances when you’re not using them.
- Reduce interest rates on your credit cards. If you’re in good standing, your credit card provider will likely negotiate your interest rate or offer a promotion designed to keep you as a customer.
- Look at your recurring subscriptions. Those $4.99 a month hits to your credit card add up over time and we’d be willing to bet that you don’t even use some of them.
Sell some of your stuff
Who needs to have a garage sale when there’s Facebook marketplace? Some of the stuff we’ve seen sold is astonishing, but hey, there’s something for everyone out there. Just be sure to meet in a public place (police station parking lots are great) when dealing with strangers.
Pay down debt
It stands to reason that the lower your debt, the more money you’ll have available to save for a down payment on your home. We know that budget is a dirty word for a lot of people, but whether it’s in the form of a spreadsheet or via an app like You Need a Budget, giving all of your money a job to do is empowering and quickly points out where you can make some adjustments to get rid of debt and increase your savings.