3 tips for a stronger saving strategy
If you're planning on buying a home soon, you already know how important it is to prioritize your savings. But spending during the holidays can easily derail the best financial intentions if you don't plan ahead.
According to the Bank of America 2017 Consumer Spending Snapshot, November and December were the top retail spending months for Bank of America customers in 2016. Last year, American consumers reported they expected to spend around $983 on gifts.1
The good news is that there are strategies and tools to help you stay on track for your home buying goals.
Tip #1: Automate your savings plan.
Use our Short-Term Savings Calculator to figure out how much you'd like to put aside each month for your goal. Then set up an automatic monthly transfer to your savings account for this amount. Bank of America Online Banking customers can also use Spending & Budgeting tools to create and maintain a home saving budget.
Tip #2: Make purchases part of your saving strategy.
Bank of America customers can enroll in our Keep the Change® program to round up debit card purchases to the nearest dollar amount and automatically transfer that amount to a savings account.2 Another approach is to use a platform like BankAmeriDeals®, which allows any Bank of America® debit or credit card user to earn discounts (in the form of cash back) at a number of popular retailers, restaurants and service companies. In other words: Every time you buy a gift for someone else, you'll also be giving a gift to yourself.
Tip #3: Set your holiday budget ahead of time.
Decide in advance how much you want to spend for the holidays. If you have a lot of gifts to buy for people, consider a "white elephant" gift exchange, or an easy DIY gift such as baked goods. Either way, having a holiday budget to stick to can help you stay in control of your spending.
When you're ready to purchase a new home
Bank of America offers a range of mortgage loans so you can choose the option that helps you stretch all the dollars you've worked so hard to save.
For example, our Affordable Loan Solution® mortgage could be a good option for qualified homebuyers. This fixed-rate loan for modest-income borrowers offers a competitive rate with a down payment as low as 3% to help make buying a home more affordable.3
For more information on the full range of Bank of America loan options, as well as special offers, contact me.
1"2017 Christmas Gift Spending Plans Close in on $1,000," AmericanResearchGroup.com
2Upon enrollment, we will round up your MasterCard® or Visa® debit card purchases to the nearest dollar and transfer the difference from your checking account to your Bank of America® savings account. If your savings account enrolled in Keep the Change® is converted to a checking account, Keep the Change transfers will continue to be made into that account. We may cancel or modify the Keep the Change service at any time without prior notice. Keep the Change is not available for small business debit cards.
3Available for fixed-rate purchase loans with terms of 25 or 30 years and on primary residences only. Certain property types are ineligible. Borrower(s) must not have an individual or joint ownership interest in any other residential property at time of closing. Maximum purchase loan-to-value is 97% and maximum combined purchase loan-to-value is 103%. For loan-to-values >95%, any secondary financing must be from an approved Community Second Program; ask for details. Homebuyer education may be required. Restrictions apply regarding co-borrowers. Maximum income and loan amount limits apply.
4Down payment and/or closing cost assistance programs may not be available in your area. Down payment and/or closing cost assistance amount may be due upon sale, refinance, transfer, repayment of the loan, or if the senior mortgage is assumed during the term of the loan. Some programs require repayment with interest and borrowers should become fully informed prior to closing. Not all applicants will qualify. Minimum credit scores may apply. Sales price restrictions and income requirements may apply. Homebuyer education may be required. Owner-occupied properties only. Maximum loan amounts may apply.