When it comes to goals, the number one goal most of my clients have is buying a home. The number one problem is- they don't know where to start when it comes to saving for that home. Today I'll be sharing 3 tips to help you save for your dream home/down payment. 

When it comes to saving, one of the main things that you need to know is what exactly you are saving for, aka your goal. Identifying how much home you can actually afford should be one of your first steps when you start thinking about purchasing a home. You not only need to identify how much you can afford but also how much you are going to need for your down payment. 

Are you going to put down 20%, 10%, 5%, or 3%? 

Knowing how much you are planning to put down as well as what that percentage looks like in numbers is crucial- Does 10% equal $10,000 or $20,000? 

Once you have identified the amount you need to have for your downpayment, it's time to identify by when you need to have this money saved- aka your timeframe. This is a crucial step in your saving process because you want to give yourself a REALISTIC timeframe. Don't just think about saving $20,000 in a year, take into consideration your income and your expenses. Be honest with yourself, with your current income and expenses, can you save $1,666 dollars a month? ($20,000/12 months). If not, what do you have to adjust to make your goal in a time that also works for you? 

Having a realistic timeframe will help you set up realistic action steps- for example, how much do you need to save each week, or month to achieve your goal. 

If you don't have a budget, the first thing is first- create one. 

If you have a budget already, it's time to review it so you can identify how much you can actually save. 

- Write down how much you earn and subtract all of your expenses. 

Your expenses are everything from your bills, groceries, transportation, restaurants/ordering out, personal expenses, and so on. 

If you have any debt, make sure you write down how much is your minimum monthly payment for each debt. 

Once you have your updated budget, it's time to figure out how much you have left to send to your savings. If there's not enough money left, ask yourself the following questions:

Separation makes everything so much better and easier. Open a separate savings account ONLY for your house/downpayment. 

Once the account is open, set up weekly or bi-weekly automatic transfers (set it and forget it). Another thing you want to ensure is that this account is separate from your others savings. This will help you avoid any unnecessary transfers between accounts. 

TIP: When setting up your transfers, schedule them during the weeks where you have none to fewer bills to ensure you don't get any overdrafts. Also, treat your automatic transfers as bills. 

Remember, later on, you can keep this account open for any house-related expenses. 

PROTIP: Save before you spend. Promised money is NOT your money until you have it. Another great thing to do to help you achieve your goal faster is to save any extra money you receive. 

Saving for your dream house can feel intimidating at first, especially because you don't know where to start, but it does not have to be. Try these tips today and I know they will help you achieve your goal. Remember, a realistic budget will help you achieve so much!