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Tips on Saving for a Down Payment

Buying into Brooklyn is no easy feat. Prices are continually going up and competition can be fierce when you find a good deal. The hardest part for most is securing the funds for a down payment, which in New York is generally more than the average 10% you are expected to have in other parts of the country. Here are some ways you can start socking away money to put towards a future home:

  1. Lower your monthly expenses. Go through your subscriptions, memberships and other expenses. Are there any you can do away with? If so, cancel them and pledge to put that money in a savings account instead.
  2. Skip vacations for a year. This is a hard one we know. Plane fare and hotels are super expensive though and if you were to save this money instead, that would be quite a chunk of change. Think about maybe taking a cheaper vacation instead. Somewhere off the Metronorth perhaps? An inexpensive Airbnb rental?
  3. Eat at home! Going out for dinner at a restaurant really adds up. Think about how much you spend weekly and how you can cut that down dramatically by cooking at home more.
  4. Save automatically. After you’ve budgeted how much you think you’ll be able to put away each month, set up a direct deposit into your savings so you won’t touch that money.
  5. Get a second job! If you have time to get a short term weekend job or a part-time work-from-home position, this could be a great way to save. You can put this entire paycheck in a savings. The job can be something very simple and maybe even fun. We know someone who did this by working on an ice cream truck over the summer. She was able to save quite a bit and got free ice cream too!

You can read more on how to save for a down payment from The Balance. Once you’re ready to buy, read this home buying guide by RC’s Francesca Girardi!

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