Is renting really throwing money away? If you think so then we know you are trapped in a renter’s nightmare as well. Maybe it's time to look around the real estate market but one problem still arises. You do not have savings for a down payment. In order to make a down payment, people save for years but living on rent makes it impossible to invest. The higher your down payment is, the lower your interest and mortgage payment would be. Here are a few ways that will help you save your down payment fast.

As Deacon Hayes, the owner of financial education company Well Kept Wallet says “Renting might seem fine at first but once you have enough money to put down on a home, then it makes more sense to buy.”

Special Savings Account:

It would be a wise decision to keep 20% of your earnings aside for the down payment. You would not gain any interest if you stash this money in a daily savings account. Check for special accounts that offer a greater interest rate. When you are offered a higher interest rate, you would be able to earn more money and reach your saving goals faster. Even if you don’t have a special savings account, making a direct deposit into your regular account won’t make you lose your money. You need to commit that you don’t use this money in any other activity other than the down payment. You will save a good amount of down payment in two years. A lot of patience is required for the saving process, but hard work pays off.

Get A Second Job:

If you are looking for a way to turbocharge your income, getting a second job is the answer. I know it is not an ideal employment situation to work more than one job. But you have to go through a rough patch when it comes to buying a home. Don’t make your second job torture for yourself. Here are some examples of the side gigs that would provide you extra cash to pay off your bills and make savings:

• If you like pets, you can let your coworkers, friends, and neighbors know that the next time they are going on a long vacation. You would be there to take care of their pets. For the cash Of course!

• Turning your car into an Uber. If you are traveling back home from work might as well make some money out of it. You can register to Uber and take passengers when convenient to you.

• If you are qualified enough to have a job, it won’t be a problem for you to teach the primary students some basic courses. You can sign up for online tutoring. 

Cut Down On Your Expenses:

You need to cut down all your extra spendings for a while. When you pay attention to your expenses, you would be surprised by how much cash you find. Here are a couple of ways you can decrease your expenses and save money.

• You can cancel your gym membership. Alternatively, you can take a walk or jog in your street to burn calories.

• For some time, try wearing old clothes. But if you really want to shop, don’t buy your clothes from a branded store. You can get the same designer items for a cheap price at a thrift shop.

• Make a grocery list of the basic necessities and stick to it. Don’t waste cash on all the junk food. Buy those items which are on sale. 

You would be surprised to see how just these few ways can save you a lot of money.

Clear The Clutter:

Certain things in your house are of no use to you. They are taking unnecessary space around the house. As you have an intention to buy a new house, this would help you clear the unnecessary stuff and make money out of it as well. The best things to sell:

• Childhood Toys:

  I agree we have a strong attachment with the toys of our childhood but admit that we are old enough to give them away. eBay would be the best site to sell them away. Make sure to see the competitive prices before you make an offer.

• Pre-loved Clothes:

  You have got a really pretty party dress hanging in your wardrobe that you have worn quite a few times before. Or maybe you have a shirt or a jean that does not of you anymore. Finally, your inability to let go of your old favorites might pay off.

• Your hair:

  Not kidding! You could earn some serious cash for your beloved hair.

• Old DVDs And Games:

  Tired of watching tangled again and again. Sell it off to someone who hasn’t watched it yet. You might have a stack of such CDs.

• Empty Jars And Boxes:

  You might have some empty jars and boxes that are taking up space in your store. It would be a good idea to sell them to passionate jam makers or someone who can make good use of it.

Retirement Plan:

Pause your savings for a retirement plan. Ideally, 15% of your household investment is your retirement savings. If you are saving for quite a while now, you will have enough money to borrow for a down payment. But make those withdrawals are penalty-free. One to two-year pause in your retirement savings would cause no harm. You can jump back to your retirement target once you have got your own home.

If you are looking for a house. Check out the properties in your favorite neighborhood listed by Dealty!