Thinking about buying a home in the next year or two? You don’t need to have it all figured out right now, but you can start building positive financial habits that will move you closer to your goal. Remember, small steps today can lead to big financial wins tomorrow!
This summer, we’re inviting you to take on our One-Month Savings Challenge, a flexible way to reset your finances and make progress toward saving for a down-payment, paying down debt or building an emergency fund.
Pick One Goal
There are a lot of excellent reasons to want to reshape your finances, but it can be overwhelming to try to do it all at once. Try picking one goal at a time and putting all your focus into that. Here are a few you can choose from:
- Saving for a down-payment
- Paying down debt
- Building an emergency fund
- Strengthening your budget habits
No matter which goal you pick, you’ll benefit from creating better habits and be one step closer to financial confidence!
Week 1: Know Your Numbers
Before you can save, you need to know where your money is going. Tracking your income, spending and debt will give you a clear picture of your current finances and help you identify areas where you can cut back or redirect toward your goals.
This week, try:
- Writing down your long-term financial goals and the steps you’ll need to get there.
- Tracking every dollar you spend this week.
- Reviewing all of your automatic payments and set reminders for the due dates.
Mini Challenge: Cancel one unused (or barely used) subscription or service you can do without. Make a note to transfer that amount into your savings each month. (Every dollar counts!)
Week 2: Spend With Purpose
Budgeting isn’t about stopping you from doing anything fun, but rather ensuring that you are spending your money mindfully! This week is all about recognizing the difference between wants and needs. By planning ahead and avoiding impulse purchases, you may be surprised at how much you can save without making major sacrifices.
This week, try:
- Planning all your meals this week and skip the delivery.
- A no-spend day – or bonus points, a no-spend weekend!
Mini Challenge: Make note of the amount every time you wanted to impulse spend. At the end of the week, tally it up and transfer that amount into your savings account.
Week 3: Automate and Simplify
Consistency is key when it comes to saving. Automating your transfers reduces the chances of forgetting or the temptation to skip a month. This “set it and forget it” strategy also helps build your savings quietly in the background, so you don’t have to stress about it.
This week, try:
- Setting up an auto-transfer to your savings. Examples may include transferring a certain amount every time you make a deposit, or simply $20 a week. No matter the amount, every bit counts!
Mini Challenge: Round up the change from your purchases this week and put it in savings. (There are several apps that can help you do this!)
Week 4: Plan Your Next Steps
You’ve put in the work, now it’s time to think long-term! Setting your sights on homeownership doesn’t mean you have to be ready to buy tomorrow, but understanding your future goals will help keep your momentum going.
This week, try:
- Researching the home financing process. (Psst, our blog is a great place to start!)
- Making a vision board so that your goals will always be front of mind. When things get tough, this will remind you why you’re saving. Motivation matters!
Mini Challenge: Pick at least one financial habit you tried this month to carry into the next month and beyond!
You might not be ready to buy a home now, but starting small today will make a huge difference later! A few weeks of mindful saving and spending can help build habits that will last well beyond summer.
To learn more about our home financing process, visit our website!
