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How Millennials can Save to Buy a Home

Monday Apr 22nd, 2019

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Many millennials in today’s marketplace find themselves doubting that they’ll ever be to afford a home in their lifetime.

After paying back student loans, rent, utility bills, meals and transportation, there’s not likely to be much wiggle room in the saving department.

However, when saving for a big purchase, every bit helps and there are some simple ways that millennials can put away a few extra dollars each month.

Share living costs with a roommate.

The appeal of living on your own, after years and years of sharing space with others is pretty obvious. BUT, when interested in saving to buy your own property, paying steep rent for an apartment to live alone can be unnecessary.

Sharing both the cost of rent and the cost of utilities is one of the best ways to save major dough. In some cities like New York, San Francisco and Boston, having just one roommate can help save you over $700 every month!

 

Move in with your parents.

Even better than sharing the cost of a place with roommates is to make a move back to your parent’s house! Yes, I know, after years of freedom outside the scope of Mom and Dad, this may not be ideal, but saving for a big purchase comes with sacrifices. Living with your folks, even briefly can be of great help in the saving department.

 

Apply for a credit card with low interest rate.

Credit cards, when used carefully and correctly, are precious tools. Using a credit card regularly helps you build up credit and also practice budgeting and cash control skills. There are many rewards cards available today that provide points redeemable for cash back or even to put towards other purchases like electronics or flights.

When getting your first credit card, you’ll want to go for something that won’t rack up a ton of interest. Search for factors like a 0% APR period, free credit score services and cards with no annual fees.

 

Avoid coffee shops.

Sorry Starbucks, I’m looking at you.

One of the easiest ways to cut back on your daily spending budget is to lay off the non-fat skim lattes. Purchasing a daily cold brew at expensive cafés, while delicious, is a money-draining habit. As an alternative, invest in a nice coffee pot and prepare your pick-me-up at home.

I know, I know- easier said than done. But just think- taking this route can save you over $2K annually!

 

Sell your car.

While not a feasible option for all, selling your automobile can lessen your monthly budget by several hundred dollars. If you can turn to public transport or find a coworker who you can carpool with. Without a car, insurance costs, loan payments, gas refills and pricey repairs are out of the equation.

 

Are you a millennial looking to make the move towards homeownership? Contact me today to start planning.


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