“Fast” is relative here, of course, but contrary to popular belief, you don’t have to give up your lifestyle for a decade to save up for a down payment. When you build your plan from the ground up with efficiency in mind, you can get there much faster than you would otherwise. For the quickest route, though, you’ll need a little extra help to automate savings, pay down debt, and work toward your goals with laser-like accuracy.
If you’re taking the DIY approach, you’ll need a clear, realistic plan you can follow consistently for the foreseeable future. We’re talking several years.
This may seem like an unwinnable battle, but with the tips below, you can set yourself up with a streamlined plan that’s easy to follow over the long term. One that takes care of some of the work for you.
With a major purchase like this, you need to calculate exactly how much you want to save down to the penny. Of course, the main goal is to be able to afford a down payment on a house within your desired price range, but that’s not the only thing you’ll end up paying for when purchasing a home.
When doing your calculations, don’t forget to account for any closing costs, fees, and other costs associated with moving. This will ensure you’re ready to cover the price of a moving company (if that’s part of your plan) and any odds and ends you’ll need for the new home.
Once you add everything up to get your total savings goal, you’re ready to get into the nitty-gritty.
Next, break your goal down into manageable monthly chunks and set a timeframe for how long it would take you to reasonably complete it. The key word is “reasonably” here. The title may say “fast,” but stretching your finances too far will only set you back. So, take care to mix a healthy amount of caution in with the efficiency of your plan.
Based on your existing budget, choose a realistic monthly saving goal you’ll be able to maintain for an extended period of time.
Then, trim any fat you can from your expenses to create more room for savings.
The best way to consistently hit your monthly savings goal is to make it impossible to miss. Log into your online banking dashboard and set up automatic transfers to your home savings fund (preferably a high-yield savings account). If you want to keep your finances nice and organized, you can arrange them around your income streams and bill schedules.
Whether you’re currently working through debt or not, it’s best to avoid taking on new loans when saving for a home. More debt means less savings potential, which means a longer journey to your destination.
If you’re like most Americans, you probably have some debt lingering around. Although it may take years to work through, the plus side is that you can improve your credit score as you pay it down. Once you’ve reached your savings goal, a lower credit score can help you secure a lower mortgage rate on your home.
The above tips will help you stay as consistent as possible if you go it alone, but you don’t have to. If you’re looking for the fastest route to saving for a home, you need a system that knows your finances inside and out, works within your budget, and provides calculated guidance on how to manage multiple goals at once, with saving for a home at the top of the priority list. You need a system like the Money Max Account (MMA).
MMA is an all-in-one interest cancellation and wealth-building software that takes years of money-managing hassle off your plate. Using advanced algorithms and high-level banking strategies, this system analyzes every aspect of your finances and shows you exactly how to get from where you are now to your end goal.
Based on your cash flow, outstanding balances, and savings goals, MMA works around the clock to find and redirect idle money in your accounts for maximum impact. It tells you which savings goal or debt to focus on, how much money to allocate to it, and when, every step of the way until you reach your target.
That means you’ll be on the most mathematically precise path to putting a down payment on a house—without doing a lick of math. With efficiency like that, you can hit your savings goal in record time. But it doesn’t stop there.
Once you sign the papers and get the keys to your new home, MMA will guide you to pay off your 30-year mortgage in as little as 7 to 10 years. Along the way, you could save hundreds of thousands in interest payments that would’ve gone to the bank and redirect that cash toward your other goals.
Want to see for yourself? Check out our library of reviews. Thousands of clients have built their financial futures with MMA, and you can too, without making any big changes to your current lifestyle.