looking for money saving tips

hey all. I'm working on saving for a house, I want a big downpayment so that the monthly payment will be lower. I need some money saving tips here.

anybody got any?

coco

Hmm, well, a big one would be to drive less! Consoladate all your trips, especially if there's a few that you can do on the same side of town.

Also, go grocery shopping once a week, and no more. You might spend a lot on food for that one trip, but then you won't spend money on food for the rest of the week! You also won't spend money on gas to drive to the grocery store.

Well, that's what I've got. I'm probably not much help (being 17 and all), but I figured I'd try.

My favorite site is http://hillbillyhousewife.com/index.htm

Its mostly how to save money on food, but there are links to some other sites too.

Review your finances. Often the experience of making a budget is like.. counting your calories. You realize just how much you're spending where.

That may help you get ideas.

For 17, you have a lot of insight.

My suggestion is make a shopping list. I find it easier to get what I need and not what I want. Plus, you don't forget things and have to make emergency trips which waste gas! Also, clip coupons and remember to use them!

Also if your monthly expenses (such as insurance or memberships) offer bank draft, they may give a discount for doing so. I know my health insurance offers 10% for bank draft.

Good Luck.

Hi cocowan, what I did to help save money when I was saving to buy a home was I started saving all my change.  I put it a jar and at the end of the month, I deposited into a savings account I didn't touch, no matter what.  I also clipped coupons.  When writing in my check book, I would round up, say like if it cost, 5.85, I would write in my check register that it was $6.00, then at the end of the month when balanceing my check book, I would transfer that extra money into that savings account.  You will be suprised how much it adds up.  If you can cut back on your phone bills, take off some of the bells and whistles, cancel cable for a while.  I don't know your situation, but I took on a few cleaning jobs on the weekends, and that money went into savings. Good luck.  Owning your home is very rewarding. 

first, figure out an actual amount that you want for that down payment...it's hard to reach a goal if you don't have a very specific one!

then, figure out an actual date that you'd like to have that money by.

then, do a simple balance sheet - income versus expenses.  ALL expenses!  see what's left over for savings.  see if any of your expenses can be reduced so that you can increase your savings.  see how much you'll need to save every month to reach your goal.

then find that house!  good luck!

Reduce the amount of money you spend on eating out.  You can usually buy a lot of groceries for what it costs for one decent meal out.  If you have fancy coffees regularly, cut those to a minimum.  It's not that you can't ever have fun again, but if you are serious about saving money, you need to be careful about how much money you spend on luxuries (and really, a $4 coffee is definitely a luxury). 

Check your local paper for events that are free/cheap to reduce your entertainment budget.  For example, it's way cheaper for us to go to a movie at the local college than to go to the big cinema.  Festivals/craft fairs are often free and lots of fun - treat them a bit like a museum - go and look and take pictures, but don't buy. 

Once you've done that budget that beth talked about, put the amount of savings aside - into a different account - with EVERY paycheque.  Save first, spend what's left.  If you have any other debts, pay them off as quickly as you can.  Don't carry balances on your credit cards.  This will also help your credit rating which might mean your interest rate on your mortgage might be a bit lower, which will save you thousands over the years.

Good luck!

Don't you need at least $60,000 (going by the standard 20% rule)as a down payment for a home?  Wow, it would take about 50 years of saving change to save that much.  I would work out a budget and set aside an amount that you know you can live with while you are saving.  They have great templates at microsoft.com that you can use with Excel.

watch the show called "till debt to us part" .. some great ideas

if not, make a spending limit on things, only buy it if you need it.. and make a list of the things you NEED, not want. + if you have kids, get rid of them

I would suggest opening an ingdirect savings account, if you have them in the US, then send a definate amount there every month.

Check out exactly any fees your bank charges for withdrawals etc, and only ever do the free transactions.

I spent several years while a student ONLY buying things on special, I would by enough to last a couple of weeks, and if it wasnt' discounted i wouldn't have it. Most goods go in a few week cycles, also if you do this with toiletries etc, it can make a HUGE difference (just think saving 25% is like getting 25% interest on your money, which is impossible) (looking at pamphlets etc before hand makes a big difference) (btw the only reason I don't do it now is because in Germany they don't really have huge discounts, but I still use this principle when I'm in England)

Don't buy "stuff" it is cute, it is nice, do you need it? if not don't buy it. I never buy anything the first time I see it. go home, think about it, if you forget about it you didn't want it in the first place, and if you really still want it 2 days later, well, then you probably do want it and it is probably worth getting.

Borrow books from the library, or buy cheap in second hand stores.

Take your lunch, don't buy prepackaged food, if you drink alot of soda, buy big bottles and refill small ones to take with you, ALWAYS take your own water with you so you don't have to buy it.

I don't have a house, but I do have more years of university education behind me than any sane person needs, have travelled extensively, and have about 10,000 in the bank never taking money from my parents, and only having had a "real" job about 1 year of my life. (lots of part time jobs though to pay the rent in college). My brothers and sisters all had bought houses of thier own in thier early 20s (with a mortgage of course, but without help from my parents at all - they didn't travel so much). So even though you are young you can also do it.

This is an interesting post for me too.  I am just about to start seriously saving for a house, I would like to save approximately £7,000 gbp (?12,000usd) before the end of next year. 

I have a spreadsheet that I use to list all of my regular bills, I just colour in the cells when the bill has been paid.

I changed all of my direct debits to go out of the bank on the 1st of each month, that means all the bills are paid as soon as I get my wages.

I am now taking all of my monthly allowance for food and petrol out of the bank as soon as I get my wages each month - that way I have the money in cash at home, I can see how much it is going down and how much I have left, and I shouldn't need to take any more money out of the bank for the rest of the month.

I budget a "savings" as a bill, as soon as I get paid I put a little bit away into another account.

I am now having my vegetables delivered to my house every week so I will eat more healthy things that are delivered rather than any old thing that I can pick up from the supermarket visits (if you're in the UK check out www.rivernene.co.uk).

you can look into differnt types of first time homeowner programs. They allow you to buy a house without a huge downpayment.

Also look for "deals" on houses. I was 22 when we bought our first house, we found a house that was priced below it's actual worth - giving us instant equity and allowing us to only put $1,000 down. In our specific case the house had been sold to a relocation company after the family moved out of state -- the relocation company lower the price in order to quickly sell. This is just one example but you can find houses going into forclosure, people needing to sell quickly, houses being sold at tax auctions, etc

Lots of good ideas here.  I would say look at your income and make a budget, then stick to it.  Put money away each month for savings and then use what is left to pay bills, food, entertainment, etc.  Try not to use credit cards and work to pay them down if you have balances.  iF you can get a line of credit through the bank with a low % rate, then use that to pay of your credit card, then work on paying down the loan (less interest that way).  If you eat out or go out a lot (movies, etc) try to find cheap alternatives - and bring your lunch and coffee to work!  Lots of little things to do, just hard to implement them sometimes!!

i have a 9-5 job and then i also do come consulting work.  all the consulting work income went directly into my savings account...and stayed there.  when i bought my condo, i put 10% down.

Public libraries loan movies out for free.  Or, if you rent a lot of movies try  the mail programs they have out there.  Hubby and I used to rent 3 movies a week for +$15 bucks a week.  We spend $18 bucks a month for as many as we can watch and return. 

I definitely agree with pay yourself first.  I have an automatic transfer of money from my checking to savings done on a weekly basis.  As soon as you get enough money saved up, put it in a CD or something that will penalize you to pull it out early.  They usually have a much higher rate of return than regular saving accounts.

• Drink more water instead of soda, kool-aid, tea, and coffee.  (it's good for your new lifestyle anyway!) 
• Buy a water filter pitcher so you don't have to buy bottled water. 
• Keep a couple water bottles that you constantly refill in the fridge w/that filtered pitcher.
• Switch to those new bulbs.  They really do cut down on electricity. 
• Use the plastic grocery bags for garbage more often.  My mom keeps a regular plastic garbage bag in her can and puts a grocery bag over it.  It saves her from going through bought bags, it forces her to take out her garbage more often and it recycles.
• Use more kitchen towels that can be washed rather than paper towels when cleaning spills and messes.
• Make sure you use curtains to keep your place at a more regulated temprature.

I think that's all the ideas I have right now besides what's already been mentioned....like the lunch idea.  

While I think these are all great ideas, and it's always good to save money, it's not really necessary to put down a down payment in this buyer's market.  Think about it this way: you either scrimp and save for a long length of time in order to be ready to buy a house, OR you scrimp and save for a long length of time, all the while putting that money towards your mortgage years sooner (because it will take you years to save up enough).  It equals out eventually, especially if you continue to do well in your career.  First-time home buyers have a lot of incentives, too: for instance, the seller usually pays all the closing costs when you are a first-time buyer.  Also, at income tax time you get a massive refund.  It's worth it to purchase a house with no money down, especially while house prices are so low right now.

And finally, should your life change, or for whatever reason, chances are you will eventually buy another house.  This means that you will build up equity and be able to afford a nicer house sooner.

The thing I would suggest more than any other is to look at a lot of houses, and make sure you find one that not only fits your budget, but also your lifestyle.  A good realtor whom you trust is invaluable for this.  Oh, and also get a fixed interest rate.  I bought my first house last year without putting any money down, and it's worked out great!

Good luck!

I couldn't agree more with Jenka! 

We bought our first house a couple years ago.  We worked the down payment into the cost of the house.  Basically the buyer put in our down payment and closing costs and that was how we negotiated the price.  We saved money not knowing this would work out this way but now we have a little cushion saved for a rainy day. 

Definitely avoid adjustable rate mortgages if at all possible!!!  BEWARE of the A.R.M.mmmmmmm

This is a good article on the subject

Healthy Eating on the Cheap

To add on here...turn off your lights!  That's an easy way to save on your energy bill.  Switching to new light bulbs is a great idea.  Some last seven years or so.  Unplug appliances.  TVs and the such use power even when they are turned off.

My energy bill has been less than $25 a month for my 1,300 sqaure foot apartment.  In California, too!!!  I've seen others with the same square footage with bills over $300.  Saving energy is a good money saving idea.