10 Ways to Pull Together the Down Payment for a Home

If a home purchase is in your future, now is the time to start saving for the down payment. Why get going now? Because it could take a while to save up the 20 percent for a down payment.

Of course, you can buy a home with less than 20 percent down. The Federal Housing Administration has lowered down-payment requirements for mortgages it insures to as low as 3.5 percent to make it easier for buyers to get into the market.

But if you contribute less than 20 percent down on a home purchase, you’ll be required to buy mortgage insurance. It protects the lender, not the buyer, from the chance you’ll fail to make your payments.

Conventional mortgages require private mortgage insurance (PMI).Explains Investopedia:

Private mortgage insurance typically costs between 0.5 percent to 1 percent of the entire loan amount on an annual basis. On a $100,000 loan this means the homeowner could be paying as much as $1,000 a year, or $83.33 per month — assuming a 1 percent PMI fee.

With an FHA mortgage, the insurance is called a mortgage insurance premium (MIP). Click here to see the FHA’s costs and requirements.

With mortgage insurance in mind, you can understand why it pays to save up at least 20 percent before taking out a mortgage. While that’s a big job, many buyers manage it. It takes focus, discipline and, often, outside help. Here are 10 ways to get that down-payment money:

1. Look into down-payment assistance programs

You might be surprised how many programs exist to help buyers — especially first-time homebuyers. Last year, RealtyTrac counted 2,290 down-payment-assistance programs across the country.

One way to find such programs is through Down Payment Resource, which calls itself “a Web-based software company with a mission to connect people with hard-to-find financial resources.”

The site takes your address or city, estimated annual income and number of people in your household. It asks if you are an armed services veteran or a Native American. It delivers a list of programs for which you may be eligible and contact information for participating lenders in your area.

Or, look for programs near you by typing “down-payment assistance programs” and your city’s name into a search engine. Income requirements typically apply, but check to learn if you are eligible.

If you are a veteran, you may be able to buy a home with no down payment.

2. Set up a dedicated account

Get going by setting up a savings account that pays the most interest possible. If you’ll be tempted to divert the money to other needs, set up an account solely for the down payment. Comparison shop for rates at Money Talks News.

3. Put savings on auto pilot

Saving is painless and virtually unnoticeable when you establish an automatic withdrawal that pulls money monthly, twice monthly or weekly from your checking account.

4. Dedicate windfalls to your goal

Pledge to put every tax refund, gift of cash, purchase refund and work bonus into your down-payment account.

5. Stash away every raise

When you earn a raise at work, carry on as if it never happened. Have the difference between your old and new paychecks funneled automatically into your down-payment savings.

6. Sell your stuff

Sell your possessions for cash to fatten your account. Money Talks News is full of inspiration and tips about how and where to make the most money selling your things. Here’s where to start:

7. Sell your car

Pump up your savings fast by disposing of assets that have real value, like a car, boat, motorcycle or expensive sports equipment. Do without or replace the car with a cheap beater.

8. Sell taxable investments

Plan to sell investments to raise money for your down payment? If so, sell stocks, bonds, mutual funds and other investments in taxable accounts instead of touching money held in tax-deferred retirement accounts like IRAs and 401(k)s. Selling investments in tax-deferred accounts carries stiff penalties if you sell before retirement age.

Dip into retirement savings with your eyes wide open: Read “What You Need to Know Before Raiding Your Retirement Plan.”

9. Get help from family

Rules differ by lenders on whether and how much help you can get from gifts for your down payment. Zillow reviews those rules.

One example: The FHA lets borrowers apply gifts from immediate family members toward a down payment. You’ll be required to produce a “gift letter” from the giver, verifying that the money is not actually a loan. You’ll probably also need to show copies of checks or wire transfers so your lender can verify the origin of the gift..

10. Ask your employer for help

Some companies, colleges, universities, and state or local governments have programs to help employees with down payments. Ask your human resources department about possibilities where you work.

When negotiating for a job, you may be able to ask your new employer to include down-payment assistance as part of your compensation package — as a signing bonus or relocation assistance

8 Secrets to Building a Budget That Works [Part 2]

6. Monitor your goals regularly

Compare your budget with your actual day-to-day spending. Sometimes a wild card like car repairs or medical co-pays sends you way over budget. But if you find yourself in the red more than once in a while, it is time to look for ways to stay motivated.

Maybe a “just this once” coffee, lunch out, toy for your kid or pizza for the family has burgeoned into an inability to say no. Here’s a phrase that can help: “That’s not in the budget right now.”

7. Be flexible

Suppose gasoline prices unexpectedly spike, or you need $20 for your middle-schooler’s chess club fee. The money has to come from somewhere, so you need to be able to shift dollars from category to category.

Note: This does not mean a license to overspend. Quite the opposite. It means you need to get creative about meeting your needs.

If you want your kid in chess club, it might mean sacrificing a couple of once-a-week lunches out.

Does that seem like more deprivation? Look at it as enrichment for your child. Keeping things in perspective is a major component of that thing called adulthood.

8. Celebrate your progress

In the past 90 days, you pared that consumer debt by $330 — way to go! Your emergency fund is up to $800 — woot! You started that Roth IRA and automated a small monthly contribution — yay, you!

Compare the way you’re living now — taking charge of debt, making plans for the future — to the way you used to live. Remember the feeling of hopelessness, the fear that you would never get ahead? Now you are doing something about it.

8 Secrets to Building a Budget That Works

Some people refer to budgets as a “money diet.” That’s an unfortunate choice of words given the negative connotations associated with dieting: reduced options, deprivation, maybe even pain.

Fortunately, a budget doesn’t have to hurt. It’s not punishment for sins real or imagined, but rather a simple, smart tool for taking control of your finances.

Like a healthy and realistic diet, budgeting is all about balance: Save money where you can so you can spend where you want.

So, whip your finances into shape by following the next eight secrets to a budget that makes sense — and cents — for you.

1. Create a goal

What do you really want out of life? Maybe your budget is currently about damage control, such as managing consumer or student debt, or paying off that lemon you wish you’d never bought.

Or perhaps you are thinking about the future: entrepreneurship, a home of your own or a self-funded retirement.

Knowing what you want gives you a starting point and helps you focus on a goal, such as $7,000 for the last of your student loans, or $1,500 to kill that credit card balance once and for all. Facing the debt means you are taking charge instead of feeling helpless.

2. Schedule your goal

Financial success author Napoleon Hill wrote that “a goal is a dream with a deadline.” Without a deadline, that goal may remain on permanent “someday” status.

Prioritize your goal, whether your aim is retirement, or buying a home or car. Automate a monthly amount toward savings or debt. Open a subaccount and name it for your goal — “Pay Cash for Next Car,” “Down Payment on Home.” Then, save whatever you can reasonably afford each month.

Automate your savings. Even if you can only save $10 a month, by the end of the year you’ll be $120 closer to your goal.

3. Track your spending

If you don’t know where your money is going now, how can you make it work the way you want?

Some people keep it all in their heads. But if you’re not writing things down, it’s easy to forget a couple of bucks here and there. Those forgotten amounts add up.

For example, it’s easy to remember you spent $30 on gasoline. It’s harder to recall the extra money you spent on an energy drink and beef jerky when you went inside to pay.

You don’t have to carry a little notebook. All sorts of budgeting spreadsheets exist online. Or use a budgeting app or online budgeting software such as our partner PowerWallet, which will track your cash, measure your progress, and maybe even give you coupons.

Remember, you’re not doing this to punish yourself, but rather to get smarter about your funds.

4. Start slowly

Deny yourself too much, and you may crack after a few weeks. Next thing you know, you’re going on a wild online shopping spree or buying rounds for your buddies at the sports bar.

And, no, it doesn’t matter that you used online coupon codes or that it was $3 pitcher night. You still blew the budget.

If that happens, get yourself back on the frugal wagon, but with modifications. Allow yourself a bit of a slush fund for small niceties, or a touch of riotous living.

Remember, plenty of frugal hacks exist to help you enjoy life inexpensively — or even free. For tips, see:

• “14 Ways to Have More Fun for Less Money“
• “10 Fun and Inexpensive Things to Do With Your Kids This Weekend“

5. Find a budget coach

Organizations such as the National Foundation for Credit Counselingand the Financial Counseling Association of America offer money help on a sliding-scale basis. Tip: Be sure to check any credit counseling organization through the Better Business Bureau and your state attorney general’s office.

A budget coach might have financial hacks you’ve never considered. This person can also help keep you motivated.

7 Simple, Free Moves Guaranteed to Make You Richer [Part 2]

6. Negotiate ways to raise pay and lower costs

A powerful way to build wealth is to increase the amount of money coming in while decreasing the amount going out.

With that in mind, negotiate a pay raise. If possible, lay the groundwork now to get a raise in the new year.

Just as important, keep finding ways to lower expenses so you are squeezing more money from your paycheck. You’d be surprised what’s potentially negotiable:

• Medical care. Some doctors and dentists will give you a discount if you pay cash at the time of service.
• Credit card interest. If you’ve been making payments on time and have a decent credit score, ask the cardholder to lower your interest rate. (And while you’re at it, look for a better deal on a credit card — such as one that pays rewards.)
• The cable bill. Call up the provider and ask for a lower rate.Emphasize your other options, such as switching to competing cable companies or dropping cable in favor of Netflix and Hulu.

7. Think past today’s needs

Eventually, you will get used to the new, more frugal lifestyle. But even as you are basking in the glow of your savings success, it can be tempting to slip back into old patterns.

When that temptation arises — and it will — remember to think past today’s needs, and to instead focus on tomorrow’s wealthier future.

This is a crucial attitude adjustment. Stop thinking you have to have everything you want as soon as you want it. An “instant gratification” attitude is a huge impediment to building wealth.

Instead, continue to look for ways to trim expenses large and small. For example, since shelter is another huge chunk of most people’s budgets, maybe it’s time to look for a cheaper place to live. Other ways to save include:

• Keep your car as long as you can instead of trading it in every few years.
• Look for free stuff to create more room in your grocery and entertainment budgets.
• Pay for everyday necessities (and, yes, a few reasonable treats) with discounted gift cards.

7 Simple, Free Moves Guaranteed to Make You Richer

Some of us think wealth is unattainable. Hard work is expected, but building a fortune isn’t on our radar of possibilities.

We believe the rich will get richer, and the rest of us will stay right where we are — unless, of course, we slide backward.

But such pessimism is unwarranted. It may not happen overnight, but people of moderate means can and do leverage their dollars to build wealth over time.

The best news? Some of the most effective tactics for achieving wealth don’t cost a dime.

Here are seven crucial steps to getting richer over time.

1. Set a goal

It isn’t enough to simply say, “I want to invest in real estate.” That’s more of a pipe dream than a goal. You need to create a road map to get you from here to wherever it is you want to be.

For example, if you are considering investing in real estate, take concrete steps to learn more about what it will take to reach your goal. Such steps might include:

• Educating yourself about the local rental market, such as learning about current vacancy rates and how much rent you can charge per month.
• Determining how much money it will take to get your dream off the ground.
• Figuring out how long it will take to set that cash aside.
• Researching avenues that can help you achieve your dream, such as  buying foreclosed properties at auction.

2. Create a budget

Create a budget that will get you to the goal you have set. Figure out how much you pay for necessities — a mortgage or rent, your monthly food bill, and other such costs — as well as optional purchases you make each month.

Then, subtract any extras — for example, keep basic cable but eliminate pay-per-view movies. Or, budget for a month’s worth of groceries but drop all but an occasional night out for a restaurant meal.

Once you know your true expenses, subtract that figure from your take-home pay. That should give you a better idea of how much you will have available to save for your wealth-related goal.

3. Track expenses

Budgeting is important, but your spending estimates may not be as accurate as you think. Check your numbers by tracking expenses for at least one month. This will show you exactly where your money is going.

Once you start tracking your daily expenses, you might be surprised to find that $300 a month is dribbling away on small, inconsequential purchases — apps, lunches out, magazines, music downloads — that you previously overlooked.

Decide to cut such purchases in half, and you’ll have an extra $1,800 a year for your wealth-building goals.

Our friends at PowerWallet can help you both track expenses and find ways to reduce costs. Note that this doesn’t have to mean massive deprivation — instead, it is simply a smarter use of available funds instead of blindly pitching dollars at wants and needs.

4. Live below your means

Once you have a viable budget in place, stick to it closely as possible. Put any savings away for retirement or in another type of investment portfolio.

This doesn’t mean you can’t ever have fun again. But you have to weigh the opportunity cost of each splurge. The more you live below your means now, the wealthier you are likely to become in the future.

5. Nix any debt

If you have money left over each month, you definitely should save it — unless you have debt. In that case, it often makes more sense to use any “extra” money to pay off current obligations instead of saving or investing it.

Remember, living according to the “minimum payment due” philosophy is guaranteed to keep you in shackles. Instead of merely paying the minimum, pay as much as you can toward your bills so you never have to pay interest again.

Once the debt is gone, your new budget should keep you from falling back into the red.

50 Ways to Make a Fast $50

No matter how carefully you plan, money can run a little short at times. Maybe your child needs new shoes. Perhaps your car broke down, or you just want a night out on the town.

Whatever the reason, if you find yourself needing extra cash, there are plenty of ways to earn it — now more than ever.

Following are 50 ways to make an extra $50 in just a few minutes or a few days.

Perform tasks

• SwagBucks. Watch videos, play games, answer surveys, and use their search engine and this company will pay you for the tasks.
• TaskRabbit. This site connects you with local people willing to pay you for a wide variety of tasks — from light carpentry to picking up takeout food.
• Drive for Uber. If you’ve got a car, put it to use earning extra money in your spare time. You could also drive for Lyft. Click here to find out how much drivers can make ride-sharing.

• Agent Anything. The “agents” are university students who perform tasks. “For the last two years, we’ve provided errand-runners for working moms, beta testers for startups, temp workers for small businesses, and street teams for major corporations,” the site says.
• Zaarly and Thumbtack. These are sites that match people with local folks who will pay to have tasks and errands performed.
• Fiverr. What would you do for $5? Write a love letter for someone? Attempt to eat a tablespoon of nutmeg on video? Market your service on this website for $5 or more.
• Amazon’s Mechanical Turk. You can make a few bucks performing one of the many tasks available at this site. Projects include things like writing product descriptions or selecting the best photograph for a product.
• Field Agent. Another app that pays you to do things like checking prices and scanning bar codes.
• UserTesting.com. You can earn quick cash by looking at someone’s website and figuring out what might be confusing for the average user.
• ReceiptHog. This company will pay you for market research data. Simply snap a picture of your receipt every time you buy something and they’ll send a little money your way through PayPal.

Sitting

• House-sitting. When friends or neighbors go out of town, offer to keep an eye on their house, pick up the mail or water the plants. Don’t know of anyone who’s leaving? Try an online job portal such as Mindahome.com.
• Baby-sitting. Baby-sitting isn’t just for teenagers. Sites likeSittercity and Care.com can connect you with a gig.
• Pet-sitting. What’s better than playing with a puppy? Getting paid for it. You can start with friends or family, or sign up for a national service like Fetch! Pet Care.

Selling

• Garage sales. Garage sales are a great way to declutter your home and earn extra cash. Some cities require a permit for yard and garage sales.
• Consignment shops. Clothing consignment stores accept like-new clothes, shoes and accessories. When the item sells, you get a portion of the proceeds.
• Used-book stores. Stores like Half Price Books buy used books for cash.
• Used-entertainment stores. You can sell used video games, DVDs and even CDs to local resellers, or online through sites likeSecondSpin.com.
• eBay. You can auction off practically anything you own at the grandfather of all auction sites.
• Craigslist. You can sell anything from shoes to cars. You’ll probably want to meet with the buyer and get paid in cash.
• Amazon. You can also sell gently used (or new and unopened) stuff on Amazon. Fees start at 99 cents per item.
• Bonanza. This is a marketplace for both used and new items. You can set your own prices, and the site will collect a small fee for anything you sell.
• Half.com. This eBay-owned website is a good place to sell textbooks, other books, DVDs and other small items.
• Gift cards. Have any gift cards you’re not going to use? Sell them to a reseller like Cardpool or CardCash.
• Old phones. Sell your old smartphone to a site like Gazelle orNext Worth.

Renting

• Rent a room for a few days. You can rent out a room (or even your couch) to vacationers via sites like Airbnb. Note that local regulations might prohibit this type of activity.
• Make your home available. If you’re going to be out of town for a while, rent your house to someone else and earn some cash. Or perhaps you have a second home you can turn into a vacation destination. Sites like HomeAway can help you find guests.

Arts and crafts

• Craft fairs. If you’re crafty, you can sell your wares at local craft fairs. Check FestivalNet.com for upcoming events in your area.
• Etsy. This is a marketplace for artists and crafters where you can sell everything from paintings to knitted scarves.
• RedBubble. If you’re an artist, RedBubble can turn your work into posters, T-shirts and stickers. You do the designing, RedBubble does the selling and shipping.
• Society6. It works like RedBubble but has different options, such as tote bags, throw pillows and laptop skins.
• DeviantART. You can sell photography, classic prints and digital works.
• ArtFire. This site accepts both arts and crafts, “handmade with love,” for sale.
• Foap. Foap lets you upload photos you take with your phone and list them for sale on their website, paying you $5 each time one of your photos is sold.

Find it

• Claim lost money. Possibly the easiest way to make money is to check out Unclaimed.org to see if any state where you’ve lived is holding money you’re owed but haven’t received. Examples include old paychecks, rebates or refunds.

Sell body parts or participate in research

• Sell blood plasma. A local blood bank or hospital may pay for your plasma.
• Participate in medical research. Medical researchers will pay you to participate in clinical trials. Check outClinicalConnection.com.
• Sell your hair. If you have long hair that’s not dyed, you can sell it for a fee on sites like BuyandSellHair.com.

Manual labor

• Mow lawns. All you need is a lawn mower and customers. Start by asking your neighbors.
• Shovel snow. If you live in a cold climate, offer to shovel driveways and walkways for a fee.
• Clean gutters. In the fall, offer to clean out your neighbors’ clogged gutters.
• Clean pools. If you know the best way to keep pool water sparkling, this can be a lucrative gig.
• Clean houses. Know any busy parents? They’d probably be happy to pay you to clean their house.
• Be a mover. If you have a truck, offer to move friends for a fee.
• Wash cars. My neighbor washes almost every car on the block once a week for $10 a pop. He can do the whole block in an afternoon.
• Paint. Some people hate to paint. If you don’t, offer your services.
• Scoop poop. Offer to keep pets’ yards clean. This is particularly lucrative when spring arrives.

Be a researcher

• Surveys. There are plenty of survey-taking scams out there, but there are some legitimate companies, too. Check outPointClub.com and Springboard America.com.
• Marketing studies. Marketing firms like Concepts Consumer Research and retailers often test their products on a panel of paid consumers.
• Secret shopping. Secret shopping is also rife with scams, but there are legit companies offering cash for evaluating a business. Check out the Mystery Shopping Providers Association. You’ll need to get certified, but the site has job listings.
• Gigwalk. If you have a smartphone, you can earn extra cash through the Gigwalk app by doing small jobs like mystery shopping, testing apps or taking photos.

Use your talent

• Caddy. If you love and understand golf and think you’re up to the task — which can be physically taxing — being a caddy can net you some decent money.
• Music teacher. If you have musical talent, offer lessons.
• Tutor. If you are particularly knowledgeable in a certain subject, you can likely find a student who needs help. Check out WyzAnt.com, where you can set your own prices. However, the website does take a cut for its service.
• Personal trainer. As with mystery shopping, you will need to get certified. But if you love to exercise, this can be a relatively lucrative gig.