A down payment is the amount you pay upfront to obtain a mortgage. The minimum down payment in Canada is 5%. Using a list price of $250,000, the minimum amount of money you would have to put down is $12,500. Not everyone has this much money laying around in a bank account, however just because you don’t have this much in your bank account doesn’t mean that it is impossible. So here are some smart ways to help save money for your down payment:
If You Don’t Need It, Don’t Buy It
There is a difference between needing something and wanting something. Here are some questions to ask yourself the next time you are ready to check out with your purchase. 1. Do I need this or want this? Because there is a difference 2. Can I live without this? 3. Can I wait and get this later? 4. Can I get this cheaper somewhere else? Maybe second hand? 5. Can this item be borrowed from someone else? When it comes down to it, stick to the necessities.
When it comes to saving money, Google can help! Using Google, you can research money saving ideas, there are plenty of money saving ideas on the internet, so have a look through them and choose the ones that work best for you.
Eliminate the Small Costs
All the small things add up. Cutting down all the small things will help to make a huge difference in your bank account. Think about the $2 coffee that you buy on your way to work each workday. This adds up to $10/week and $520/year. When you start to look at the big picture, it helps to put things into perspective.
Write Your Spending Down
By writing your spending down, you’ll be able to monitor your spending and track where your money is going. This helps you with your planning and help with possibly changing your spending habits.
Try Fixing It Yourself
With all the information that is available, you can use this to your advantage. If there are some minor projects that you need help to fix, you can use YouTube or Pinterest to help you fix or replace items rather than hiring a repair person.