Remember when Tim Gurner, a real estate magnate based in Melbourne, said that the odds of you buying a home will become higher if you decide to ditch avocado toast?
What he really meant, however, was that in order for Millennials to become homeowners, they should stop buying overpriced avocado toasts or overpriced coffee. Instead of wasting money on these things, he says that the money should be better off it goes toward saving funds for home buying.
Realistically speaking, fancy avocado toast and overpriced coffee are not the only things you need to sacrifice if you want to buy a home soon. After all, it’s no secret that home buying costs a lot of money.
If you’re really set on buying your first home early, here are some things that may have to wait in order for you’re set on becomeing a homeowner soon.
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Fancy dinners or ordering takeout
If you’re a fan of eating out or ordering takeout almost everyday, you may want to reconsider this habit. Instead, you want to be able to save the money for home buying. These costs can easily add up since ready-made food are usually more expensive compared to preparing your own meals.
It’s true that making homemade food requires more effort than ordering takeout or eating out in a restaurant. However, the effort is going to pay off in the end. Other than it being very cost-efficient, you’ll be able to see how each meal is made and you have more control over the food you eat.
Subscriptions and memberships that are seldom used
Do you currently have a gym membership but rarely do some actual gym-time? Do you think it will be more convenient to exercise at home? If that’s the case, maybe it’s better if you stop renewing your membership for now and start working out at home.
If you have current subscriptions to print and online publications or newsletters that you rarely use, maybe it’s time to let that go for now. You’re better off adding that money to your savings account. Remember, a little amount to your savings can go a long way than not being able to save anything at all.
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Your dream vacation and other luxuries
Millennials love to travel but going on grand vacations cost a lot of money. If you really want to buy a home in the next five years, you might want to hold off on booking a ticket to your dream vacation. Being serious about buying a home soon means that saving up for it should be one of your top priorities.
You can always plan for a new vacation once you’re financially settled or after you’ve successfully purchased a home. Other luxuries that require major transactions, like purchasing a car, may also have to wait.
On making homeownership a priority
In the end, financially preparing to buy a home all boils down to spending less and saving more. Keep in mind that you don’t have to give up a long list of things in order to save more money to cover all home buying costs. You just have to sacrifice a little in order for you to reach your goal.
You need to remember that you need to spend your money only on the things you need and save what’s left towards your home buying fund. Before you know it, you’ll have more than enough saved and homeownership will finally become a reality for you.
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