Millennials face many challenges when it comes to buying a home. Saving up for a down payment is difficult when burdened with monstrous student loans and a tough job market. Millennials have increased credit debt and decreased personal savings compared to their parents and grandparents.
Here are 9 ways Millennials can save for a house:
- Hire a financial advisor: A few years out of school I was struggling to make ends meet and my debt was only getting bigger. A financial advisor helped me evaluate my finances and devise a plan to reduce debt and start saving. Interview several advisors before deciding who you want to work with.
- Research student loan debt options: Student loan debts are a huge burden for millennials. Contact your lender to review your options. Reducing your monthly payment can help set aside funds for a down payment.
- Find a local REALTOR®: Ask your REALTOR® about local, state, and federal financial assistance programs for first-time homebuyers. On Long Island and in Westchester/Hudson Valley, first-time homebuyers can apply for grants from the Community Housing Innovations, Inc.
- Consider a roommate or two: Reduce your rent and utility bills. Car pool to save on gas when making trips to the grocery store or heading to work.
- Evaluate your spending habits: What are your every day spending habits? Track every expense you make over a week. Try using Mint or Level to help track your spending.
- Cut back on monthly expenses: Don’t overpay on gym memberships, cell phone plans, and cable TV. Choose less expensive plans and watch your savings grow.
- Reuse, Recycle, Repurpose: Before you go out and buy new “stuff” see what you can reuse, recycle, or repurpose.
- Earn extra money: Freelance and part-time work can be a great way to earn extra income. Put 100% of this income into your down payment savings.
- Start an automatic savings plan: Place a percentage of your salary earnings directly into a savings account.
Millennials can overcome the financial challenges to homeownership with these smart and savvy financial tips. With a plan, patience, and perseverance, the dream of homeownership will soon become a reality.
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