It takes a little more to save for a home now-a-days. Compared to when our parents were our age (in the 80’s and 90’s aka the mesozoic era) home prices have increased while salaries have not seen the same growth. So prepare to pull up your bootstraps and trim the fat to get on your way to owning a home.

A starter home in Barrie will cost between 135,000 (for an apartment condo) to 250,000 and with the minimum 5% down you’re looking at needing between 8 to 15 thousand (rounding up for lawyers fees etc.). Here are some tips to get you that down payment.

 Create A Plan

This is the perfect first step. Sit down, pull out all your bills and bank statements and decide where the money is going to come from. How much would you like to set aside each month? What does that look like in a year? Go to the bank and open a specific savings account just for the down payment.

Live With Parents

Not a popular idea but it is a frugal one. Plenty of adults live with their parents (like we did) after college to save money to pay off loans or build up savings for a home. We were lucky in that we only had to pay our parents a very small amount in rent so we were able to save a good chunk of money and quickly without sacrificing too much.

Change Your Renting Situation

For those already renting, it’s going to be tougher for you. Your house budget is already being used. You could still have a couple of options. You can downsize, cutting your housing budget, and throw that in savings or if you have an extra bedroom you can find a renter for the time being. We always liked the idea of creating a budget based on one persons income (for a couple, of course), the extra can go to savings.

Trim the Excess

Find things to cut out completely for the time being: dinners, drinks, nights out, weekends away, movies, vacations, groceries that go bad and go to the trash. Although, once your stop going out for dinner those groceries are not likely to go bad. Finding other (cheap or free) ways  to treat yourself will keep you on your money diet.

Don’t forget to take a look at your cable, internet and phone, quite a bit can be trimmed from those bills if you’re willing. If anything, call your provider and negotiate a lower bill. For tips on negotiating with your provider, check out this article from Money Ning Personal Finance Blog.

Gifts and Support

Let your family and friends know what your intentions are. If you are asked what you would like for Christmas or Birthdays just say cash for a down payment. If your parents or grandparents are a good financial situation, don’t be afraid to ask if there is anything they can help you with.

Remember you are in SUPER SAVINGS mode and owning a home is your ultimate goal. It feels good to watch your savings account grow and the idea of owning a home become more realistic. If you stick to it, the reward at the end is worth it! Remember, when you do buy a home, a lot of unforeseen expenses come with it. Training yourself to cut down on excess will ensure that you are less likely to be house poor.