If you are relying on sheer willpower alone to save money for a house…
You are always going to fail.
It’s like having a box of fresh gooey chocolate chip cookies in your house when you love sweets…
And then torturing yourself not to eat them because you are on a diet.
You have a better chance at success if you don’t have the cookies around at all.
Seeing money in a bank account is just as dangerous for me as having a full chocolate cake in the fridge.
If it’s there… it won’t be there for long 😩
I have a few tricks for the cake, but that’s not what we are talking about today!
Let’s talk about the money bit.
57% of Americans have less than $1,000 in the bank.
So, saving up to buy a house is a huge feat.
Whether you are in the 57% or 43%, saving money to buy a house can feel impossible.
If you are feeling this way… I get it.
I have been there.
But just know that the house you are sitting in right now was bought by a person… not a deity.
Your landlord puts their pants on every day one leg at a time – just like you…
And if they figured out how to save to buy that house you are in right now, so can you.
Once you know how much you can save each week to put towards your house, here are two things you can do to become part of the 43%.
Automate your savings
The more you have to think about saving, the less likely you are to do it.
Manually moving money each week requires precise memory skills AND willpower. Most of us are lacking in both areas.
Instead, take the time to figure out exactly how much you can afford to save from your paycheck. Then create a separate account to use ONLY for your home savings.
Don’t mix your money with vacation money. Or your emergency fund.
You want to have a clear idea of your progress. Keeping your home funds separate will help you do this.
Some payroll systems allow for paycheck direct deposits to be routed to multiple bank accounts.
If this is the case for the company you work for, make use of it. Set up one of your direct deposits to transfer a specific dollar amount directly from your paycheck into a home savings account.
If your company only allows one bank account to be connected for direct deposit, you can still automate your savings.
You can send your whole check to one account and then set up an automatic transfer from that account into your home savings account.
I have used both ways. They both work well because of the automation.
But the key to keeping the savings once the money has been transferred is where the home savings money is going.
Hide Your Money
Willpower is hard.
Stop tempting yourself every time you see a stash of cash whispering to you to spend spend SPEND!
Make things easier for yourself by not keeping your home savings funds in an account that you use regularly.
If there is a savings account attached to your checking account – that’s not the right account friend!
Use a completely separate account from your normal checking account. It might need to be a separate banking institution.
This way you won’t see how much you have in the account unless you log into it.
With the automated transfers from either your paycheck or main account, you won’t even have to log into the account.
Do you see how this whole ecosystem works here?
Automate so you don’t have to worry or tempt yourself.
What can you do today to take action?
Take a look at your most recent credit card statement and bank statement and look at everything that you spent money on. Is your spending aligned with your goals?
What you are willing to let go of so you can add more to your money auto savings for your house?
What’s the one thing that will get you closer to your first house – reviewing your spending, automating your savings, hiding your money, or something else?
Comment below and let’s chat about it!
