From Broke to Buying a Home

3 WAYS TO SHAPE UP YOUR FINANCES

You want to buy a home, but you’ll need money for a down payment, moving and other costs. How can you do it? Here are three ways that work together as nicely as compound interest.

1. Spend less.

Like counting calories, tracking your spending will open your eyes to “spending leaks” that can be easily plugged. Eat out less often and stick to your shopping list at the grocery store. Small changes make a big difference.

2. Save more.

Look at your monthly expenses and determine how much you can save, then have that money debited from your checking account and put into a savings account, a short-term CD or other vehicle with every paycheck. This account should be considered separate from your retirement savings.

3. Pay off revolving debts.

If you can’t pay cash (or debit) for something, don’t buy it. Reduce credit card balances. Pay off high interest cards first, make payments on time, and pay much more than the minimum payment. As you eliminate each debt, double down on the remaining cards.

Keep your goal to buy a home top of mind always, and you’ll be pleasantly surprised at how quickly you can make your dream happen.