Give Up These 7 Money Wasters for a Down Payment!
presents are unwrapped, the holiday decorations are packed up (or not, we won’t tell), and the ball has dropped on the end of 2015. It’s time to make some New Year’s resolutions—homeowner-style.
You can make 2017 the year of the down payment. Really.
By cutting a few things from your budget this year, you can speed up your progress toward having a down payment by the time those holiday decorations come back out of the closet. You probably knew these were splurges eating up your discretionary income, but did you know just how much? Don’t worry—we’ll do the painful math for you so you know what to kick to the curb in 2016.
1. Skip the latte
Annual savings: €876
A medium latte at Starbucks costs€3.65. If you stop by every day before work, that adds up So, suffer through the free coffee at work and think instead of the new kitchen where you can create your own coffee bar.
2. Cut the gym membership
The average monthly cost of a gym membership is€58 a month, or€696 a year, and that’s assuming you’re already a member and not paying sign-up fees as well. Not to mention that most of our good intentions taper off sometime in February and we end up paying for something we’re not even using.
We’re not telling you to stop exercising. But try getting creative with your routine instead. Enjoy the great outdoors! Walk on your lunch break! Ride your bike! You’ll bag a surprising amount of cash toward your down payment.
3. Cancel the cable
Cable gets more expensive every year. In 2015, cable customers paid an average of €99.10 a month, or €1,189.20 for the year, according to the Leichtman Research Group. If you drop the cable in favor of, say, Netflix at€7.99 per month, you’ll save €91.11 per month—or €1,093.32 for the year—and get commercial-free original shows.
4. While you’re at it, drop a streaming service
Annual savings: Nearly €100
You don’t really need to subscribe to all the streaming channels at once. If you have Netfix, and Amazon Prime, you’re paying roughly €25 a month. If you drop Amazon Prime, you could save€99 a year. If you drop Netflix, you could save €95.88 a year.
5. Lower your mega smartphone plan
Annual savings: Up to€300
Did you get one of those unlimited everything plans when you bought your phone and never changed it—even after you realized you don’t talk on the phone that much and Candy Crush Saga doesn’t use much data? If you switch to a lower plan—or at least drop a couple of gigs of data—you could save€10 to €25 a month.
6. Pack a lunch instead of buying it
Taking a sack lunch to work might make you feel like you’re back in elementary school, but let’s do the math on how much it saves on your lunch costs. The average daily cost for a worker who bought lunch from a restaurant in 2015 was €11.14, according to Statista. That amount adds up to about €56 a week, or €2,674 a year. If you can make a sack lunch for €4 a day, you will spend about€20 a week,€80 a month, or €960 a year—an annual savings of about €1,714.
7. Quit drinking
If you’re an avid social drinker, you may not realize how much those €8cocktails are adding up.
Say you go out three times a week, ordering at least two cocktails at €8each . That adds up to €48 a week,€201 a month, and—wait for it—a whopping €2419 a year.
Best of all, you won’t miss the things you cut (OK, maybe some), but you’ll rack up a truckload of money in 12 short months. In fact, drop everything from this list and you could bank nearly€7300 by the end of the year. Are you ready to give up these 7 money wasters for a down payment by 2017?