Over the last week, there has been heated public debate regarding a recent article by The Australian journalist, Bernard Salt, which suggested that the reason millennials couldn’t afford a house was due to their fondness for expensive avocado brunches. The claim has been made, that us “youngsters” are simply not willing to sacrifice our luxuries in order to buy a house. In a way, we agree. We believe that you should be able to enjoy the things you love AND buy your first home at the same time! Here are a few ways you can save for your first home and continue to enjoy your life.
Firstly, be realistic with yourself. Remember you will be paying off this mortgage for the next 20-30 years, so getting into some maintainable “good saving habits” will ensure long-term saving success. If you remove all of the things you enjoy doing from your life, all you have left is work. And nobody should live to work!
Know what is important to you. If you want to save for your first home, you simply can’t afford to do everything all the time. When you understand which expenses make the biggest influence on your happiness you can make a few trade offs. Eating out, heading to the cinemas or hitting up the gym are all achievable – but perhaps not together. Keep that gym membership, but start packing your lunch every day. If you’re a person who lives for nights out socialising with friends, why not get your backyard ready in time for summer so you can have the gang around at your place instead? Eating and drinking at home is far cheaper than going out and you get to avoid the line at the bar!
If you simply need to go out for a dance and staying in just isn’t an option, then leave your bank cards at home. Plan your trip home in advance, take out only the amount of cash that you are able to spend and send yourself home when it’s gone. It will end up being better for both your health and your pocket in the long run.
Have an achievable goal. Years of saving for a long-term goal can seem extremely daunting. However, if you separate your goal into more manageable weekly savings targets – leaving some cash aside for your treasured avocado smash – you eventually settle into a routine and begin to watch the nest-egg grow. In the end, it’s all about the mindset. Once you’ve put yourself into saving mode, reminding yourself that you’re working towards a better future, you’ll be amazed at the different areas you’ll be able to shuffle around to find spare cash.
Buy now. Do some homework, because right now could be the perfect time to be buying your first home. Interest rates are at a record low and when combined with current stamp duty concessions and the first home owner grant, you can save thousands of dollars by buying a house right now! If you have a full time job, you might qualify for a home loan regardless of how much you have in savings. Buying in the current property market can get you an incredibly priced home and ensure you’re locked in for a lower interest rate. You can take our quiz to find out if you can buy your first home for what you pay in rent.
For more information and tips on saving, check out: