A condo is the ideal choice for anyone buying their first place or downsizing to a smaller home. Buying a home is exciting. Unfortunately, it’s a lengthy and costly process. You’ll need money for a down payment, earnest deposit, appraisal, home inspection and settlement fees. Before making an offer on a condo, you need to establish a budget and devise a money saving plan.
Open a savings account. If you need to save money to buy a condo, you need to start a savings account with a bank or credit union. Talk to your bank about an interest-bearing savings account, in which you earn interest payments from your deposits.
Evaluate your income and debts. Before you can save money to buy a condo, you need to determine your amount of monthly disposable income. In other words, how much can you afford to save monthly? If your extra income is $300 a month, deposit the funds into your savings account.
Eat at home. Dining out for dinner and lunch is costly. However, you can save money by grocery shopping and cooking meals at home. You can treat yourself to an occasional meal outside the home, but don’t make a habit of eating out three or four times a week. If you do eat out, look for discount coupons, such as “buy one, get one free.”
Look for free entertainment. Saving money to buy a new condo takes self-control. And you may have to entertain yourself at home or enjoy free and inexpensive activities such as an outdoor concert, museum, local parks, or rent a movie.
Stay away from the mall and retail outlets. Think twice before making a purchase. It’s okay to buy items you need. However, this isn’t the time to shop for new outfits or the latest electronic devices.
Sell personal items. One of the quickest ways to acquire extra cash to buy a condo is to sell old items. Plan a yard sale, take belongings to a consignment shop or take advantage of online auction sites and sell clothes, electronics, furniture, book or children items. Deposit the money into your special savings account.
Get a part-time job or start a home-based business. If you don’t have disposable income, look for second employment or find ways to make from at home. Work part-time in the evenings or on the weekends.
Valencia Higuera is a freelance writer from Chesapeake, Virginia. She has contributed content to print publications and online publications such as Sidestep.com, AOL Travel, Work.com and ABC Loan Guide. Higuera primarily works as a personal finance, travel and medical writer. She holds a Bachelor of Arts degree in English/journalism from Old Dominion University.