Follow these three easy steps to meet your financial goals while still enjoying life. Are you ready?
Having ten or twenty percent as a down payment ready to go for a Silver Lake real estate can help you get the mortgage you want, secure a better interest rate, make your offer on a house for sale more attractive to sellers, and avoid private mortgage insurance (PMI) costs – yuck! But there’s just one problem: Saving for a down payment can feel like an impossible goal, since 20% of the typical Hollywood Hills home’s purchase price is roughly $120,000!
Don’t let panic set in. Take a deep breath. Recognize you have lots of options to save up the cash you need to buy a home for sale in Silver Lake, CA. After all, your home-buying goal is just one part of your life. Correct? Missing every happy hour or social event just to funnel as much cash as possible to this single financial goal isn’t a good idea. So, instead of eating every meal at McDonald’s, look at small actions that carry a big impact. Think of saving for your down payment as a marathon, not a sprint — and you’ll find you can work toward your goal and still enjoy the life you’re living by using The Shelhamer Real Estate tips.
1. Cut Back Expenses Without Cutting Off Your Fingers
Cutting costs is the obvious place to start when you want to save for a Hollywood Hills home down payment. When you eliminate an expense, you can move that money over to your savings. Look at the costs in your budget you know you wouldn’t miss — and cut them right away. This may not account for much, and that’s OK. You don’t need to cancel your electricity but maybe you don’t need that $200 dinner out this week.
Next, look at what bills you’re not willing to give up – Netflix is staying! Then call those providers and explain you can no longer afford to pay your current rate. Ask what the options are. Can they provide discounts? Rate reductions? Is there another service tier with fewer bells and whistles that still covers your needs but costs less?
If that doesn’t work, start shopping around for better rates. Can you switch cellphone carriers or insurance companies? Will another service provider give you a discount or incentive to leave their competitor and become a new customer? Think about them apples.
2. Match Your Savings to Your Discretionary Spending
This savings hack can help you inch toward your goal while also helping you spend mindfully. Here’s how it works: Every time you go shopping or spend money on something you want, look at the total amount of your purchase. Then transfer the same amount from your checking to your savings. Bingo! You’re rich.
What’s the point? This trick forces you to use and think about your money differently and prioritize your spending in a new way.
3. Change Your Home-Buying Timeline
Saving for a $120,000 down payment in one year, for a Hollywood Hills home, is a lot harder than saving $40,000 a year over three years. If you want to buy a home but enjoying life today is still essential, play with your timeline. There’s no rule that you have to buy a house right now. However, interest rates are expected to slide north this coming year so don’t waste too much time.
If you’re interested in maintaining your current lifestyle without making huge sacrifices or major changes, consider these actions. You can still save for your Hollywood Hills home down payment and enjoy your life today!
Your Hollywood Hills Real Estate Expert
I’m a local Hollywood Hills Real Estate agent with The Shelhamer Real Estate Group, and It would be my pleasure to help you find the perfect property to call home in the Hollywood Hills, or if you’re thinking about selling a house, condo, or multi-family building in, Studio City, Sherman Oaks, Encino, North Hollywood, Toluca Lake, or Burbank it would be a privilege to help you get top dollar for the sale of your property.
Lets chat sometime. 310-913-9477 or contact me