- 1). Gather as many receipts, bank and credit card statements as you can from the previous three months. If the necessary receipts are hard to find,, save all of your receipts for the next three months. Look over your statements and receipts to determine what you're spending the most money on. Saving money effectively in order to buy a home requires limited spending, especially on luxury items and activities.
- 2). Identify a few things that you can live without and vow to stop spending money on them. Be realistic about your needs and consider how you can cut back. If you indulge in a weekly pedicure, buy an at-home pedicure set and do the pampering yourself. Even the best, most precise budgets can be whittled down to the essentials. The money you save can be put towards your home savings account.
- 3). Set a savings timeline and cut back in stages as you reach your goals along the way. You're likely to feel overwhelmed if you sell a car, discontinue a gym membership, move into a smaller apartment and unsubscribe to your favorite cable channels all at once. Instead, let go of one thing at a time while keeping your savings goal in mind.
- 4). Challenge yourself a little more if you're already on a strict budget that doesn't include discretionary spending. Spending a few extra hours at the office, choosing one week each month to use public transportation and getting a part time job can add up to huge savings in the long run if you're consistent. Don't think of savings as a punishment, consider it a treat to yourself. You'll soon enjoy the benefits of home ownership.
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