Money Saving Tips for First Time Homebuyers

It is tough to save up for your first home! However, you can do it! And these money saving tips will certainly help add some funds to your piggy bank (aka down payment fund)

Avoid Impulse Spending

Think before you buy

Don’t buy anything the first time you see it. Go home, think about if you need it, and think about the amount of working hours that would go into that purchase. Is it still worth it?

If you are an impulse shopper at heart, next time you go to the mall, only bring cash for what you will buy and do not bring plastic – this way, you will be unable to impulse shop!

Take your Lunch to Work

Home Cooked Lunch

Buy 5 lunch containers (or 10 for a couple). On Sundays, go to the grocery store and buy your weekly groceries. Also buy the food you will have for lunch for the week. There are quick and easy recipes to follow – or do my favouirite trick: buy a whole rotisserie chicken, rip it apart into the lunch containers, and cook some potatoes or brown rice and cook a veggie (bell peppers and zucchini) and throw this into all of the lunch containers for the week. Yeah, it’s the same every day. But its good! You can spice things up by keeping a few containers of different bbq sauce etc. at work to change the flavor up a bit. This will save more money than you can imagine!

Buy Used–Everything!

Used Everything!

Buy a quality used car instead of a new car. You may be able to get a car you could not normally afford new – and this will still likely be cheaper than a new model of a cheaper brand. If you keep the car in good condition yourself, the vehicle will likely retain some value for when you upgrade (and be sure to upgrade to another used vehicle!)

Baby stuff – always check out your local used baby store and buy sell groups on Facebook, Kijiji or Craigslist. Gently used baby clothes cost pennies on the dollar. Most people keep their kids clothes very clean – especially dressy clothes, which do not get worn quite as often.

Workout equipment – ditch the expensive gym membership and work out at home. And buy your workout equipment used. Most people buy workout equipment and do not end up using it. Further, most things like benches, weight racks, bars and plates can take a much more serious beating (as they would in a gym) than they do in someone’s garage.

And when you buy used – do not be afraid to negotiate! Its your money. Most people expect some negotiation. But be sure you have some room to move. If you feel that the price offered is a fair price, do not feel that you must negotiate. I recently purchased an item used for $40, when it would retail at $85 plus tax (13% in Ontario!). I felt this was fair and did not want to lose the opportunity to buy it as it is difficult to come by, so I simply paid the asking price.

Try Shopping at Bulk Food Stores

Food Purchase- save money buy in bulk

Especially for nonperishable items. You can save a fortune if it is something you already purchase frequently.

Do Not Buy Something On Sale if you Wouldn’t Buy it at Full Price

Stop and think

If it is not something you would purchase at full price, why would you purchase it at all? Sales are meant to be luring – if not, there would not be so many sales or liquidation stores. These stores are successful because of the Siren song of a sale. However, if you buy something, it should be something you plan on using, something you would pay full price for, and something that is not merely on a whim.

Buy Things With Multi Purpose

Multipurpose High Chair

If you are purchasing gadgets, it is good if they can fulfill a few purposes. For example, I waited until the high chair I wanted for my baby was on sale. The high chair fit the specific need of allowing my child to sit in a chair and eat, but it also had a reclining feature, which allowed my infant to lay in the chair while I was in the kitchen, well before he was old enough to properly sit up and eat pureed foods. Another example: I purchased a convection steam oven when it went on sale because it allowed me to steam cook food and blend it to make homemade baby purees. There are baby making food systems on the market, however, they can only make baby good. That works for some people. But the longevity of a product like that is limited (so it would be one to buy used!) The convection steam oven also allows me to cook meals for my husband and I, thus we get much more use out of it.

Consider Renting

Consider Renting

There are many more options to rent than you can imagine. If you are doing some housework and need a sander, consider renting it from a local hardware store. You may also rent party dresses for special events. While it is not cheap and may feel like you are throwing money down the drain, you are throwing far more money down the drain if you buy a dress for an event and only wear it once!

Hopefully these tips help you build your savings. If there are some money saving tips you can share, please do so in the comments!

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