Saving for a down payment in 2024 might feel overwhelming—especially when you factor in rising interest rates, inflation, and escalating real estate prices.

If that sounds bleak, fear not. Our experienced team continues to make homeownership accessible and will work with you to create a custom loan plan that fits your lifestyle and financial goals.

That said, there are a few steps you can take to get a jumpstart on the process, which means getting creative about saving for a down payment. Here are a few strategies to help you do it.

Automate Your Savings

Payday feels great. Unfortunately, for many of us, that initial excitement of seeing our checking account grow gives us an unconscious license to spend freely instead of moving 10-20% of our paycheck to a savings account.

Fortunately, many banks now offer automated savings solutions that put your savings plan on autopilot. Whenever you receive a direct deposit or recurring transfer, you can arrange for a predetermined portion to be automatically directed into your savings account—a smart strategy to boost your savings.

Audit Your Spending

Remember that one time you signed up for a seven-day channel trial to watch a movie without “paying” for it—but then you never actually canceled your subscription? You’re not alone. Over 40% of Americans are paying for recurring subscriptions that they not only don’t use but don’t even know they have!

These small expenses can quickly add up, especially if multiple subscriptions are active simultaneously. Audit your checking account statements and look for recurring charges. Identify which services are essential and those you can live without.

Hustle

How do you spend your evenings and free time? Are these activities enriching your life and helping you achieve your goals?

If not, it might be time to turn idle evenings and weekends into cash flow.

The beauty of the gig economy is that nearly anyone can dive in without sacrificing their lifestyle or full-time job. Consider driving for Uber. Or, if you're creative, try selling your art on Etsy or offering your services on Fiverr. Chances are, you have an untapped skill set that can boost your monthly cash flow, allowing you to save for a more significant down payment.

Stop Debt in Its Tracks

High-interest debt isn’t just a mood killer—it’s getting in the way of your homeownership goals. Consider consolidating it onto a single low- or zero-interest card if you have high-interest debt. This will free up cash to help you pay down your debt, reallocate your spending, and potentially save for a down payment.

Save Your Tax Refund

If you’re among the many Americans who receive a W-2 and anticipate a tax refund, make 2024 the year you save that IRS check. Resist the temptation to spend that money and instead deposit it directly into your savings account or use it to pay off debts. This is a great way to boost down payment savings quickly.

JustChoice Lending: Your Mortgage Solution

At JustChoice Lending (JCL), we are a socially responsible mortgage lender providing competitive rates and personalized service. We assist clients of all income levels, including those from lower-income backgrounds, achieve their homeownership goals by improving their credit scores. Contact us today to speak with one of our mortgage experts to get started!