Saving up enough cash for a down payment towards a home is a daunting challenge even made harder for millennials looking to settle down due to the prevalence of student loan debt and current housing affordability issues. But that doesn’t mean one has to let go of that dream of becoming a homeowner. Challenging doesn’t mean impossible, so prepare a dose of grit and try these clever ways to help boost your savings rate.
Return to the Nest
Instead of an elaborate wedding ceremony or costly gift, consider asking your parents to build a self-contained housing unit at their backyard for you to live in while you save up for a home of your own. This immediately frees up a considerable chunk of change that would have gone towards rent.
Many granny flat builders specialise in these types of development at a reasonable cost. After you move out, parents can find a rental income opportunity possibly making their money back after helping you out. Don’t forget to offer to return the favour of building them their own granny flats in your backyard when the time comes for them to downsize.
Shave It Off the Top
Secure your savings first by transferring a fixed amount from your current account to a high-interest savings account. Flip the formula of saving what is left of your pay check to taking the savings immediately off the top and only spending what is left. This gives you a sober dose of reality where you can get started reducing unnecessary expenses to make a budget work.
Find a Side Hustle
Now that you’ve set an aggressive savings rate and have established a budget, consider finding other income sources so you can either increase your savings further or enjoy some luxuries during this budget-restricted season of your life. You can opt to take on a second job, accept more freelance work or even consider building an online personal through a YouTube channel or Instagram account and earn from views and sponsors.
With these clever approaches, young couples can face the challenges towards homeownership and get closer to their dream of moving into a home of their own.