If you’re ready to make your dream home a reality, it may be time to set a budget and start saving. New home construction is a significant financial commitment, and if you are like many people, you may need to make real changes to reach your goal of building a home. A few small financial behavior changes can help get you to your goal faster.
Increase your savings.
The most important way to save for new home construction is to increase how much you are saving. This will involve looking over your budget, or creating one, to determine how much you need to live and how much you can afford to save. Then, cut back on many non-essentials, such as eating out and entertainment expenses. If possible, consider finding extra work to supplement your savings.
Create a home construction account.
Once you’ve set a budget goal for your new home build, create a checking or savings account solely for this project. Whatever money goes into this account should be quarantined until it is time to begin work on the house. Put any debit or ATM cards associated with it in a safeguarded location, and use debit and credit cards attached to other accounts to pay for bills and everyday essentials.
Spend refunds or bonuses.
Tax refunds and end-of-year bonuses can often feel like free money, so it’s common for people to splurge once they receive them. However, if you are building a house, this is extra money that could go into your home construction account. If you don’t need this money for existing bills, you won’t miss it if you add it to your home fund.
Put off downsizing.
When planning new home construction, it is often smart to downsize in the year or so leading up to the build. This will help to reduce the amount you might be paying in rent or storage payments. It also means you’ll have fewer belongings to maintain or move, so more money can be allocated to the new space.
After reaching your savings goal, you’ll need a trusted general contractor to help make your dream home construction come true. For 40 years, the knowledgeable design experts at Doug Collins Construction have provided the Bigfork, MT, area with quality craftsmanship. They will guide you through every step of the home construction process and supply high-grade materials from well-known manufacturers. To schedule a consultation with them, call (406) 249-5325.