With mounting student loan debt and a highly competitive job market, Millennials may find their prospects of buying a home very limited. The main reason why many are having trouble is they are unable to save up enough money for a down payment. Although there are programs that only require 3.5% or less down, 20% is still considered the standard for conventional mortgages.
Greg Lindberg says even if you are having trouble saving up the money, you shouldn’t just give up. You may have to rethink how you’re spending your money and how you’re spending your time. For example, you may have to get a second job or assess whether it’s time to move on to a more lucrative position where you can save faster. Here are several other things you can do to get closer to that down payment goal:
Take a look at your budget: Are there unnecessary expenses that you can cut down on? Greg Lindberg says that the sacrifices you make now will pay dividends down the road. Keep this in mind as you look at ways to reduce your expenses.
Consider Getting Rid of All that Extra Stuff: The less you have, the less you’ll need to move after you find that perfect house. Sell any superfluous things you don’t think you’ll need, and you may end up with a pretty decent haul and a whole lot extra free space.
Pay Yourself First: Make saving simple. Set up a savings account where you automatically transfer a specified amount each pay period. Before you know it, you may have a significant amount of savings without even thinking about it.