How do I save for a down payment on a house?

Question

Whenever I save up to $5000 something ends up happening to where I have to spend the money for emergencies. How do I save for emergencies and save for a down payment?

Answer 1

Create an automatic savings method that you don't have to think about. It could be a set number taken out along with your direct deposit, or just a certain amount you set aside every time you get paid. set aside one amount for emergencies and one for your house payment. Whatever you can afford over as long as it takes. Then, don't relent. When something comes up, use your emergency money but don't touch the house payment.

Answer 2

You won't like this answer, I'm afraid.

You need to realize that those "emergencies" are actually part of your regular expenses. Everyone has emergencies that they need cash for that isn't in their budget -- the best example for most people are car or house troubles. Those things happen to everyone and need to be part of your contingency planning.

If you find that all these emergencies cut into your savings, then the problem is that you're living too expensively for your income. Someone out there can live on less money than you do -- there are millions who do, regardless of what you make. You need to live like them, not like you currently do. This is a difficult decision to make, because you're probably used to living your lifestyle.

The only way to save up money is to live beneath your means. If you aren't saving money, then by definition, you're not living beneath your means. Re-examine your life, cut out 10%, and start down the path to wealth accumulation.

Good luck -- the first step is the hardest.

Doug

Answer 3

You should have a special account for future investments. Set is up that it will take two signature to withdraw any money. That way you will have to discussion with your partner if the whatever is a necessity or you want it just because.

Some people are very compulsive and they think after they have taken the action.

Answer 4

separate accounts