Planning to buy a house this year and worried about how you will save with rising consumer prices? You aren’t alone. Many Americans are concerned about how they can meet their financial goals with unpredictable and unavoidable inflation affecting so many facets of their finances.
If you are in the home stretch of buying a home, with your credit score where you want it to be, then you need a strategy to save for closing costs, down payment, and moving. Check out these tips for ways to combat inflation this summer and stay on track for your goals.
Try a “Staycation”
Instead of taking a trip this summer, combat the rising cost of fuel that impacts both airfare and road trips by planning a staycation instead. By eliminating the cost of accommodations and travel, your time off can be just as enjoyable while costing just a fraction of the original amount.
If you’ve never planned a staycation before, here are a few ideas:
- Make a list of restaurants you have wanted to try in town and make a plan to visit some
- Go camping in the backyard or at a local campground
- Look for local community events like festivals or movies in the park
- Visit local splash pads and rank them
- Have a cooking competition or family talent show
- Have themed days at home, like pajama day, water day, spa day, sports day, or whatever else your family loves
- Check out local museums and attractions
Set Monthly Challenges
Each month this summer, challenge yourself and your partner to a different financial goal. Some ways to do this might be:
- No-spend week: Declare a no-spend week, where apart from essential bills everyone in the home spends $0. That includes food, gas, and things you normally consider as a regular expense like coffee, haircuts, or other “necessities.” This is a great way to remember just how frugal you can be and what things you can live without. Chances are you will end the week either a) realizing you could go without some things more long term or b) feeling extra grateful and seeing a bigger number in your checking account.
- Limit your A/C use: It is normal to see utility bills rise significantly during the summer months as we all want to cool off in the air conditioning. To limit your A/C use, try setting the temperature higher during the day when you can be out and about. If you don’t work, plan outings at a free museum, splash pad, or park for the heat of the day so you won’t mind using your A/C less. Buy fans that use less energy to operate, or hang out in the yard with a mister going. Any time you aren’t using your air conditioner, you are saving money.
- Pause subscription services: One of the places people spend money unnecessarily is on subscription services. Consider pausing expenses like streaming services or subscription boxes for a month or two. You may be surprised to find that you don’t miss them as much as you thought, and if you do you will have saved a bit.
Start a Side Hustle
A temporary additional income this summer can make a big difference in your savings goals. There are many independent contractor, flexible schedule jobs you can take on to increase your income, like:
- Ride-sharing services
- Food delivery
- Freelance work using your current skills, like graphic design, data entry, transcription, or editing
- Childcare
Of course, you could always get a part-time job as well, or start a business selling homemade goods on Etsy. There are plenty of ways to increase your income this summer, and even if they make things a little more busy for a while, you can be confident that your hard work will help you meet your goals and stay on track for buying a home in spite of rising costs.
To find out more about getting pre-approved for a mortgage, schedule an appointment with one of our loan officers.
IF you enjoyed this post, these might be helpful as well:
5 Common Mortgage Mistakes to Avoid
The Most Important Steps Toward Buying Your First Home
Steps to Determining Your Mortgage Budget
5 Benefits of Buying a House with Good Credit
What’s the Difference Between Pre-Approval and Pre-Qualification?
10 Days to Know About a VA Loan
7 Signs You’re Ready to Buy a House
How to Build Credit to Buy a House
