Saving for Your Down Payment

Christine Haughney recently wrote a great story for the New York Times called "Every Penny Counts." The story gave anecdotes on how first-time buyers saved for the down payment. I thought it gave great information for those looking to purchase their first home and wanted to share the fantastic tips from the buyers interviewed.

So what are some of the little things you can do to save up for your first home?

• Cut the extras wherever possible. Examples include quitting smoking or switching from Starbucks coffee to home-brewed coffee.
• Keep your eye on the goal, especially when making a purchase. If you find yourself eying that great new pair of shoes, consider whether you need to have the shoes.
• If possible, take a second job and use the earning only for the down payment.
• Cut luxuries. As mentioned I above, one example includes switching from Starbucks coffee to home-brewed coffee.
• When shopping, purchase only the items listed on your shopping list. This tip will help you cut down on impulse buys.
• If you must buy new clothes, shoes or other items, scour the sales racks rather than buying full price.
• Use coupons. But beware, only buy items that you need, not because you have a coupon.
• Take advantage of happy hour specials when out with friends.
• If you typically take a cab to work, take the subway. Or, if possible, bike or Rollerblade to work.
• The city offers plenty of free or low-cost cultural activities. It's a great money-saver!

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