Saving up for a deposit is much harder than it used to be and there is plenty of advice out there for doing it. However, as so much of this advice is virtually useless like ‘stop buying coffee and avocados’, it feels necessary to provide some simpler advice.
Millennials aren’t wasting their money on coffee or avocado and just cutting these things out won’t exactly raise you a deposit unless you are willing to wait a hundred years or more, depending on your passion for avocado toast! However, millennials can make the most of a more flexible working lifestyle to ensure that they can earn more and save more.
Know Your Target
The first task is to set yourself a goal. Find out how much the average deposit is in the area or areas you are looking at and then write this number down. Now, you should start working out how much you will be able to save each month and therefore how many months you can expect to save for. So if you are aiming to save a down payment of $10,000 and you can save $300 per month, you’ve got just under 3 years of saving to go.
However, you should also look at the various mortgages out there. It may be that you could get a better mortgage by saving more or you could pay more towards your mortgage and move into your new home sooner. Have a look at Altrua Financial to get an idea of what you can expect. This is about balance so make sure you have your priorities in order.
Cut Back Expenses
So, now you know how much you need to save and how long it will take at your current rate, it’s time to find ways to save more. Let’s start with your bills. Utilities are probably one of your biggest costs but you could easily save by switching providers. Many utility companies rely on you forgetting about your payments so gradually nudge your costs up. By switching each year, you will ensure that you get their lowest offer.
The next thing is to look at your other spending. Now, for all that never drinking coffee won’t do it alone, it does represent a big markup in the market and you could be saving. Instead of buying coffee while you are out, you could make a thermos instead. Similarly, batch cooking is a good way to make lots of cheap and healthy meals and nights in will always be cheaper than nights out.
Earn Additional Income
If cutting back is too difficult or you are a normal, sensible person who knows that a treat is good every so often, you should also look at ways to grow your income. This doesn’t mean taking another job or working all hours, just find ways to make a bit on the side while you watch TV in the evening.
Things like blogging, answering questionnaires, proofreading and selling crafts are always popular online and hopefully won’t feel too much like hard work. Plus, these are all things that you can do when you feel like it and not when you don’t.