Saving for a House While You Rent

To some, buying a house may seem like nothing but a pipe dream. But with some discipline and budgeting, stashing away enough money for a down-payment is just a matter of time.

Here are a few steps to make this dream a reality:

  1. The first step in the process is determining what you can afford. You can do this by using a mortgage calculator from one of the many available online from various banks and lending institutions.
  2. Once you have your savings goal, automatically transfer 10% of your income to a savings account. Better yet, invest in a CD so you won’t be tempted to spend it.
  3. If putting away that 10% seems difficult to you, use the online economy to your advantage.
    1. Apps such as Field Agent pay you cash to complete tasks in your local area.
    2. Use your skills on sites such as TaskRabbit or Fiverr.
    3. Examine your unwanted belongings and look into selling them on sites such as eBay or Craigslist.
  4. Taking in a roommate is an excellent way to cut your monthly expenses and allow you to save. Depending on the area, you can earn anywhere from hundreds to over a thousand dollars in rental income. Think of it as a short term sacrifice to reach your long term goal of home ownership.

There are countless other ways to save up to own a home, these are just a few options. But the point is, creativity, effort, and discipline are keys to reaching your goal. Search online or contact your financial professional for further ideas and suggestions.

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About cozbycpa

Heather L. Cozby is a CPA on the South Shore and Cape Cod. The managing partner of Cozby & Company, LLC, Heather has the resources and experience necessary to provide quality professional services on a timely basis and at a reasonable cost. She specializes in tax planning & preparation; audit, review & compilation services; management advisory services; bookkeeping; and accounting. Her unique niche is in working with homeowners’ associations and condominium trusts, advising with rental real estate, and providing outsourced financial consulting for mid-sized companies. She is more entrepreneurial than most accountants, and offers the best of both worlds - providing the services of a larger firm while retaining the ability to connect with her clients on a personal level.
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