How to Start Saving Money to Buy a Homestead

Getting finances in order is important for buying that homestead and building it up. Even a "finished" homestead still needs seeds for the garden, animals and supplies! That's why it's so important to find a money-saving method.

Here are 5 different ways that future homesteaders can save to buy a homestead:

Envelope Method

This is a fun method of saving money. Figure out a smaller goal amount, like $1,000, then write down random amounts on envelopes. $5, $10, $20 or even $100. On every payday, draw an envelope. "Deposit" that amount, then place the envelope in the back of the box. Repeat until the goal amount is reached!

Automatic Deposit

It takes a while to get into the habit of saving money. This is where the bank can be helpful! Some banks will automatically transfer a certain percentage of a paycheck into the savings account.

Savings accounts can then be set to only allow a few withdrawals a year. With no debit card to that account and limited withdrawals, impulse spending is less likely! Just be sure to have some way to access money if it's actually needed for an after-hours emergency (like a checkbook.)

Round-Up Method

A lot of banks are now offering this! Every time you make a transaction, the transaction is rounded up to the nearest dollar and deposited in your savings account. This is a quick and easy way of saving money.

Saving Change

I throw the coins from my change into a pint-sized mason jar. Once it's full, I cash it in and deposit the money into my savings account. I have gotten anywhere from $18-$60 from this jar! With a larger jar, I've gotten up to $167.

A quick tip! You don't need to roll it. A change machine will cash it for you. They do charge a small fee, but it's comparable to the price of coin rolls. Some banks will also accept loose change, but not all of them.

Waterfall Method

This is more for paying off debts, which is also important to saving for a homestead. By putting all extra money toward paying off a debt, like a car loan for example, the money being used toward that payment can then be contributed toward another debt, like a mortgage.

For example, let's say I have an extra $75 a month. If I started paying that extra $75 a month toward my $300 car note, I'll pay off my car faster, therefore freeing up an extra $300 a month out of my budget.

Now that I have that extra $300 by paying off my car, I can put that $375 of extra money toward paying off my mortgage. If my mortgage is $800 and I throw that extra $375 at it, I'll be paying $1,175 a month toward paying off my house. By doing this, I'll pay off my house sooner and get myself out of debt, faster!

All of these are great individually, but I like to use a combination of these methods. For example, saving change goes hand in hand with the envelope method! I believe that moving forward slowly is still moving. If you're still moving, you're doing great!

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