There has never been a better time to buy a new home. To prepare for the home loan process, it's important to take control of your finances. Trimming a little of the fat in your budget will go a long way in the home buying process. Gaining control of your finances will facilitate the loan process.
|
Trimming expenses does not have to be complex or overwhelming. By making simple adjustments you can reduce unnecessary spending and increase your savings. Paying down debt will not only help you secure a home loan but could also qualify you for lower interest rates. Listed below are a few easy, timeless tips to help you trim your expenses and add more to your bottom line.
|
• |
Write it down. You can save 20% just by writing down what you spend.
|
• |
Pay in cash. The convenience of credit and debit cards often makes us feel disconnected from the spending process. Using cash will make you very aware of how much you're spending.
|
• |
Use your head before you grab your wallet. If you see an item that appeals to you that was not a planned buy, take a day to think it over before you make that purchase. Once removed from the buying environment, you may find that you really didn't want it after all.
|
• |
Balance your checkbook. Overdraft fees can be a drain on your budget. Use financial software to help you keep your accounts balanced.
|
• |
Plan what you will spend in advance. Give yourself a weekly spending limit for non-essentials. This will give you the freedom to spend but the boundaries to keep it under control.
|
• |
Make your home more energy efficient. Raise the temperature of your air conditioning in the summer and lower your thermostat in the winter. Put in storm windows and caulk around your interior windows.
|
• |
Unplug appliances when not in use. Cell phone adapters, PDA adapters, toasters, hair dryers etc can increase your energy costs. Even though items may not be on, if they are plugged in they continue to draw energy. Be good to the environment and your wallet by unplugging items when not in use.
|
• |
Make the switch. With all of the competition among internet providers and phone companies, you may get a better deal by switching providers. Shop around and make sure there are no hidden fees that would erase your savings.
|
• |
Reduce your cable spend. If you can't go without cable TV, reduce the pay per view channels. After all, with on demand services increasing, who needs 16 channels of Showtime?
|
• |
Take advantage of what is offered for free. Rather than spending a fortune at the bookstore, go to the library. You can get books, movies, and music at the public library for free - as long as you return them on time.
|
• |
Skip the coffee shop a couple of times per week. Treat yourself to that $5 cup of coffee once or twice a week rather than everyday.
|
• |
Negotiate better deals. You can negotiate better rates on your insurance, phone, car payment and many other services just by asking.
|
• |
Entertain friends at home. Dining out can expand your waist and reduce your wallet. Chances are friends will appreciate saving the cash too. If you get together with a group regularly, get together and think of creative ways to spend time together that are less expensive
|
• |
Pay off high interest debt. You've heard it all before, but pay off your credit card debt as quickly as possible. If you have to carry the debt for awhile, shop for a card with a lower interest rate and switch. Take advantage of the lower rate by making higher payments
|
• |
Quit smoking. One more good reason to quit. If you spend $4 or more on a pack a day, you could save $1,456 per year by quitting.
ยท
|
• |
Increase your deductible on your insurance. By raising deductibles on car, renters or homeowner's insurance you may reduce your premium by 15 to 20 percent.
|
My goal is to
