Saving for a down payment is one of the most common obstacles to home buying, according to a consumer survey by Bankrate. Would-be home buyers say that credit card debts, student loans and the high cost of rent and ordinary living expenses make it difficult to save money.

We also live in an age where everyday transactions are paid with a credit card, debit card or electronic payment. The ease of payment makes it easy to overspend!

To combat these challenges, Columbus home buyers should turn to an old-fashioned, but effective line of defense: the household budget. Here’s how to get started!

  1. Write down your financial goals. Get serious about saving for a down payment, and/or paying down debt. Realize it will not be an overnight process. Commit to your goals!
  2. List your income, monthly expenses, and debts.
  3. Fine-tune the lists to break down exactly where your money is going. You might already spot a few places you can where you can adjust your spending. Do you need 3 streaming services? Can you reduce your grocery costs, or cut down on take-out meals?
  4. Consider the 50/30/20 budget rule. This allows 50% of your income to be budgeted for living needs, 30% for discretionary spending, and 20% for savings.
  5. Ideally, your debt payments should fit within the 50% allocation for living needs. If not, you will need to divert dollars from the discretionary spending budget, and perhaps from savings. If you are underwater in your budget, don’t panic – get in touch with Consumer Credit Counseling Services.
  6. Automate your savings deposits.
  7. Consider the snowball method to pay off debts, tackling the smallest balances first. This will allow you to free up cash flow more quickly, which can then be used to accelerate payoff of the remaining debts.
  8. Be willing to adjust your budget plan as needed. Budgets are not written in stone. The important thing is to stay committed to your financial goals, even if the process takes longer than you planned.

This is only an example; there are many budget strategies you can follow. These constructive financial habits will serve you well as a homeowner!

For more financial tips, read our free e-book, “How to Buy a Home like a Pro!” There is no obligation, and the wealth of knowledge is yours to keep.

As Exclusive Buyer’s Brokers, we serve your best interests at all times! Unlike real estate agents and brokerages who represent sellers, as an Exclusive Buyer’s Broker, we only represent you, the buyer, getting you the best price and terms with no conflict of interest at all times.

Understanding this distinction could literally save you thousands of dollars not only on the purchase price and terms, but also on seller concessions and home inspection issues, whether you are a first-time homebuyer or an experienced homeowner!

Contact us with your home buying questions! Remember, we are with you every step of the way…all the way home!

Andrew Show
Exclusive Buyer’s Broker, CEBA-M, MCNE, CSP, PSA,e-PRO, CREM, ABRM, AHWD
Buyer’s Resource Realty Services www.BuyersHome.com
Serving Metro Columbus, Ohio with Exclusive Buyer’s Agents
7100 North High Street, Suite 204, Worthington, Ohio 43085
614-888-4110 | 888-888-4110 Toll Free | 614-839-4110 Fax