Frugal Is the New Black

Fads in fashion come and go quickly. The Diva can think of many examples of why this makes her a very happy camper indeed. She will not bore you with the details except to say “Trucker Hats”. If you are picking up what the Diva is laying down then it is safe to say that she has made her point.

With the recent downturn in the economy, a new trend is coming into Vogue. No longer is conspicuous consumption the modus operandai for many Americans, in fact pinching pennies is a new trend. Frugal is the new black.

With many anxious sellers and plummeting prices, real estate bargains are out there for the taking. Saving for a new home does not have to be difficult.

Here are the Diva’s top tips for hatching your down payment nest egg:

1. Have a yard sale. Clear out the closets. Clean out the garage. Get rid of any unused items, this is a great source of cash and it will be easier for you to move when you purchase your dream home.

2. Eliminate unnecessary monthly expenses. Eating out, fancy coffee, tobacco and alcohol are all expensive! Put that money to better use.

3. Use tax return or bonus money toward your down payment. After you purchase your new home, speak with your tax professional to take advantage of additional exemptions through out the year.

4. See about changing your W-4 form at your job. The additional deductions will result in more take home pay that can be added to your savings account.

5. Gifts from parents and employers can be used for purchasing a new home.

6. Speak to your real estate agent about asking the seller to pay closing costs as part of the offer on your new home. In most cases, the seller can contribute up to 6% of the sale price toward the cost of your transaction.

7. Look into the First Time Home Buyer tax credit that was recently included in the 2009 stimulus bill. If you are a first time buyer, or if it has been at least 3 years since you have owned a home you could qualify for an additional tax refund of up to $8000. Contact your tax professional for details and limitations of this program.

8. Shop for your loan, the interest rate and fees charged by your lender will affect the amount of cash you need to close as well as the amount of your monthly payment. For a free quote, or to apply on line click HERE.

9. Have your insurance agent look at your current policies; many times, there are additional savings available by increasing deductibles or moving multiple policies to one agency. The savings can be used to fund your down payment.

10. Many cities and municipalities have down payment grants available for home buyers. Contact the housing authority in the area you are considering for more information.

The Diva wishes you the best of luck in your new home search. She really must tell you how fab you look in frugal!

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