MANGROVE REALTY ASSOCIATES
Lori Madden, MANGROVE REALTY ASSOCIATES
Email: [email protected]

Stuffing the Piggy Bank

by Lori Madden 09/15/2019



The idea of homeownership can seem daunting if you doubt you can save up a down payment. After all, even a modest house on a conventional mortgage requires twenty percent plus the closing costs. When saving up seems out of reach, try these creative tips to grow your nest egg:

Delay gratification

A lofty word for a simple idea, delaying gratification means doing without for now so that to attain a specific goal. Nearly every budget has discretionary funds—what’s left over after paying rent, utilities, and other necessary bills. Once you’ve identified what’s left over, you get to decide how to spend it. When homeownership is the goal, some purchases become less necessary, and others can wait until you’ve attained your objective.

First, open a savings account specifically for your down payment. Consider setting it up in a credit union or a different bank from your regular financial institution so that the extra effort it takes to move it into your regular account mitigates the temptation to use it to pay bills.

Then, consider ditching these items for less expensive alternatives (or altogether) and putting the savings directly into your new account. Treat the savings as an expense, the same way you did the bill payment, or else the extra funds could just slip away:

  • Gym membership: finding a less expensive gym or utilizing a local park for workouts could save you an extra $35-50 per month.
  • Dump satellite or cable. Try to opt for less expensive online streaming alternatives or plan regular evenings with friends to share viewing your favorite shows. Depending on the plan you have, savings can really add up and more time socializing with friends is a bonus.
  • Instead of expensive meals out, plan a movie or game night at home. Invite friends and share potluck or have everyone bring ingredients to cook together.
  • Local libraries have current books, DVDs, audiobooks, and magazines so make a habit of stopping there to check them out instead of paying for your own. Many electronic media memberships have options for sharing with a friend or family member and qualifying for free books and audios.
  • Make saving a game. See who saves the most each week—you or your spouse/partner—and allow that person one small indulgence—a latte, for example, or an evening free of the children for a spa bath.

Set a price on each of these events and pay that amount into your savings account. If you don’t isolate the savings, you’ll find it harder to keep it up.

Find alternative income

You could take a second job to add to your savings or a freelance gig. Put 100 percent of what you've paid into your savings account. Other options include monetizing a hobby (if it doesn’t cost you more money than you make) to sell online or through local outlets. Perform seasonal jobs such as raking leaves, shoveling snow or washing windows.

Put all loose change in a piggy bank (or coin jar). Determine to spend only paper money, then save all the loose change. When the jar or bank is full, take the coins to the bank or a coin-counting machine. Discipline yourself to put the cash in your savings account though so it doesn't slip through your fingers.

As you near your savings goals, reach out to your real estate professional for tips on finding the perfect home in your budget.

About the Author
Author

Lori Madden

As a Florida native growing up in Sarasota, I have seen my hometown grow from a sleepy coastal town to a highly sought-after destination along the shores of the Gulf of Mexico. After working in Chicago for 5 years, I returned to Sarasota and saw it through a new lens and really began to appreciate what makes Sarasota so desirable, including temperatures that allow for year round outdoor activities including tennis (a personal favorite), golf, boating, kayaking, fishing, paddle boarding, or just relaxing and/or shelling on our pristine sandy shores, including Dr. Beach’s #1 beach in the United States for 2017, Siesta Key! Sarasota’s cultural amenities are many and diverse, appealing to a wide range of arts lovers. Downtown Sarasota has become a destination in itself, drawing many new developments for those who want to be within walking distance of Main Street's offerings and the picturesque bayfront and marina. Foodies will find an eclectic mix of locally owned and operated restaurants offering something for everyone, and there are now Farmers Markets every day of the week in various locations throughout Sarasota, but the Saturday morning Farmers Market in downtown Sarasota draws the biggest crowds. Since 1988, my passion has been selling real estate, representing both buyers and sellers. I have been recognized by my clients and customers for an uncompromising work ethic and dedication to helping them achieve their real estate goals. Relying on my experience as a real estate paralegal and being highly organized, I am able to help make the transition between contract and closing a smooth one for my clients. With an eye for interior and landscape design, I've been known to pitch in and help Sellers minimize and/or reorganize their belongings in order to stage their home to maximize its sale potential. I specialize in out of state buyers looking for their piece of paradise along the Gulf Coast and make it a priority to keep them up to date on our quickly changing local real estate market. I welcome the opportunity to share with you all Sarasota and her surrounding islands have to offer!