Wondering how to save money to buy a condo?

Buying your first piece of real estate is an exciting thing. But doing so requires you to pony up enough cash to satisfy the banks and make sure your monthly payments aren’t too steep.

If purchasing is a goal, it’s time to start saving money and making a plan.

Here’s a guide to help you save money to buy your first condo.

Get on a Budget

Setting a budget is the first key to any purchasing goal. Saving money comes down to two things: how much you make and how much you spend. If you don’t know exactly how much you’re spending each month, you’re the financial equivalent of a ship with leaking holes.

Once a week, and then again at the end of the month, go through your income and expenses. Make sure you’re budgeting for a home and headed in the right direction.

There are several good online budgeting apps you can use. YNAB is a popular one but costs money.  Mint can help you set a budget for free. It’s also in the same umbrella company that owns TurboTax and QuickBooks, which could help some of the other tips on this list.

Identify How Much You’ll Need For a Condo

Saying you’d like to buy a condo is a rather vague goal. The price of a condominium can vary by six figures depending on where you’re hoping to buy, the size of home you wish to own, and how much you’ll be able to put down.

So do your research. Identify the neighborhood(s) and cities you want to be in. Look into HOA fees, primary mortgage insurance, and utility costs (here’s where you can find out more about those).

The average price of a condo in some major cities like New York could be a million dollars. But in a city like Houston, it might be just $200,000.

The mortgage calculator on websites like Zillow and RedFin rarely tell the whole story of how much you’ll pay each month.

Ask for More Opportunities at Work

Remember, your budget comes down to how much you make and how much you spend at the end of the day. All money-saving tips stem from this.

With a budget in place, the next step is to find ways to increase your income so you can get into your new condo faster. 

In a world where side hustles reign supreme and the part-time gig economy is becoming a massive part of the workforce, it’s easy to overlook statistics.

The truth is that the best way to make more money is to seek opportunities through your primary job. Promotions, changing to a higher-paying job in your field, or taking on additional responsibilities can all boost your salary.

Talk to your boss about it. It might not hurt to let them know you’re looking for work to purchase a condo. If you have a good relationship, they might do their best to find opportunities so you can make it happen.

Get a Side Hustle

Some jobs do have an absolute ceiling in terms of how much you can make. If that’s your situation, a side hustle is probably your best bet.

A side hustle is a part-time gig you do on the side for extra cash. It could range anywhere from two hours per week to twenty. 

Look into the popular side hustles: Uber, UberEats, DoorDash, and Task Rabbit are all quite popular. 

Less common (but still effective) options include manual labor, shoveling snow, doing odd jobs around your neighborhood, doing online consulting work, and more. Be creative and use skill sets you already have to figure out a good side hustle for you.

Just remember: most paid side hustles don’t take taxes. They’ll send you a 1099-form which you’ll need to declare at the end of the year.

It’s best to save 25 percent of all your non-taxed income, so you don’t get a huge tax bill next April or March. This could delay your plans of buying a home (and get you in hot water with the IRS).

Sell Old Stuff

Even people who identify as minimalists probably have stuff laying around their place they don’t need anymore. That could turn into cold hard cash you can use for the down-payment on your condo.

If you’re wondering how to save money, make a list of all the old things you could sell. Take pictures of these items and list them on websites like Facebook Marketplace, Craigslist, Mercari, and OfferUp. 

This could even turn into a little side hustle for you if you get good at it. Offer to list old items for friends and families in exchange for a 25 percent cut. Someone who’s downsizing that doesn’t want to do the work might happily take you up on that offer.

Look Into First-Time Home Buying Options

If this is your first home purchase, you might be in luck. Many states offer special first-time home-buying incentives. Even if you’re buying a one-bedroom condo for yourself, you might qualify.

Some of the popular ones to look into include:

• VA Loans
• FHA Loans
• USDA Loans

The incentives of these programs are pretty great. If you qualify, you might be able to put less down on a condo without needing PMI. Or you could be eligible to purchase a condo even with a weak credit score.

How to Save Money to Reach Your Goals

Learning how to save money is pretty simple. It’s a matter of spending less than you earn and putting the rest aside for your goal. In this case, that’s your first piece of real estate.

We encourage you to set a budget, sell stuff, ask for more opportunities and work, or get a second job. Know how much you need and how long it will take to get there.

For more business and lifestyle tips, check out our blog!