Five Money Saving Ideas for First Time Home Buyers

One of the more daunting obstacles for First Time Home Buyers is coming up with or spending on the down payment. In some cases, it takes years to come up with that much money and now we're asking for them to give it up. Here are five ideas for saving money replenish your bank accounts or come up with the down payment.

The easiest, least painful way for you to save money is to set up an automatic draft in to a separate savings account. The main thing you'll notice is that you'll never miss it. This is a terrific way to save money. Fit it in to your budget and then forget about it. Even small amounts can add up. Set the draft up for $50 a week, save $2,600 a year.

•2. Save your raise

A bad habit spenders develop is that of spending their money before they get it. Solution? Do the opposite. Next time you get a raise, put it in the bank or get the difference put in to a retirement account. Chances are you'll never miss it if you never plan on spending it. More income doesn't have to mean more to spend..

•3. Keep track of your spending

If you make it a point to keep track of what and where you're spending, you know where you could cut back. It's a terrific way to learn where you're overspending. Too much shopping this month? Too many trips to Starbucks maybe? Doesn't your employer offer free coffee?

•4. Cut spending

Keeping track of spending will not do you any good if it doesn't lead to cutting spending. There's several ways to cut your spending. Switch to store brands, shop with shopping list to avoid over buying, use coupons and learn to utilize leftovers. Tally your savings and put them away.

•5. Look for ways to lower your bills.

Figure out how to free money by lowering your electric bill, phone bill, insurance or cable bill but don't put this money away unless you have no more credit card debt. Paying off credit card debt is as important as saving money in the long run. As soon as you stop throwing money away on high interest credit cards, you'll find real flexibility to save money.