For many people, purchasing a home represents more than a place to live. This achievement is a foundation for stability, new opportunities, and a brighter future for everyone who lives there. But the costs of buying a home in Summit and Wasatch counties make this a challenging financial goal. Housing costs here outpace wages for many, and that gap keeps growing.
Smart, consistent money habits are the best way to get you closer to the goal of homeownership. Building your savings, bringing down your debt, and creating a realistic budget for your life are all important steps that make a meaningful difference over time.
Focus on a few practical habits today, and you move closer to your homeownership goals and a better tomorrow. At Habitat for Humanity of Summit and Wasatch Counties, we’ve built financial education into our homeownership program. We have seen firsthand how building strong financial habits over time can move a family closer to a goal that once may have felt impossible.
Whether you're working toward qualifying for Habitat for Humanity's homeownership program or simply looking to strengthen your financial future, here are five financial habits worth building.
1. Know where your money is going.
You can’t manage what you don’t measure. Create a spending plan using a spreadsheet or free budgeting app, or even pen and paper, to show you where you’re spending your money. Once you know those patterns, you can see what can be cut.
Budgeting sounds difficult but doesn’t have to be. Here’s a budgeting tip that makes it easier: Start with your recurring expenses that must be paid. Then look at how much is left and where you’re currently spending it. Where can you make small cuts that don’t impact your health or happiness? Small adjustments in spending add up to big savings over time.
The goal isn’t perfection; it’s awareness of where your money is going so you can make more intentional choices that align with larger goals like building your savings or your homeownership goals.
2. Protect your credit score.
This three-digit score predicts how likely it is that you will pay back money you borrow. Lenders, landlords, and insurers all use it to evaluate the financial risk of lending you money, and it’s one of the most important factors in whether you qualify for a mortgage on a home. Also, a higher score can mean you get better terms on your loan or lower interest rates.
Free services like AnnualCreditReport.com let you monitor your score to see how close you are to your homeownership goals. Improve your score by practicing smart money habits like paying your bills on time, keeping credit card balances low, and not opening new lines of credit unless it’s necessary.
3. Save a set amount of money each month.
Putting aside a specific amount of money each month, no matter how small, adds up. Budgeting tip: Set up an automatic transfer to a dedicated savings account on payday so the money is saved without you having to remember it every month.
When you automate the transfer as soon as the money is in your account, you won’t forget to transfer the money and you remove the temptation to spend it.
4. Reduce your high-interest debt.
Having a high credit card balance or other high-interest debt can make it harder to qualify for a mortgage, and it certainly makes it hard to save for future goals, like owning a home. When possible, pay down your balances, starting with those with the highest interest rates. If you get a raise or a tax refund, put as much of that money as you can toward reducing your debt so you improve your financial picture. Think of it as an investment in your future.
5. Focus on financial education.
The purchase price is only one expense in the homeownership process. You’re also expected to pay property taxes, homeowner’s insurance, maintenance costs both expected and unexpected, and, if you live in an HOA, recurring HOA fees. Habitat’s free financial education courses can help you understand what you’ll be expected to spend before, during, and after you purchase a home, giving you more confidence as you go through the process.
Habitat’s Homeownership Program
If purchasing a home feels out of reach in today’s market, learn about our homeownership program and sign up for our free financial education classes to improve your money habits. We are committed to helping individuals and families build their financial literacy and move toward the life and future they want.
