Millennials are often told about the doom and gloom of their generation. It’s the generation who will struggle to find well-paying jobs, the social media generation and those who will struggle to get on the property ladder. Well, there’s no harm in proving them wrong. Saving to buy a property in your 20s isn’t impossible – you just need to be savvy with your saving. Learn how to get your finances to become a homeowner in your 20s.
Stop relying on credit
It’s easy to get credit (at the beginning), but it soon becomes difficult to pay back. Use this time to pay back any credit cards or store cards that you have, before your debts start spiralling out of control. To help make it easier to pay them back, transfer your balances to a 0% interest card to avoid paying any interest on your outstanding amounts. If you’re someone who tends to have FOMO (Fear of Missing Out) or doesn’t like to disappoint people, you need to learn how to feel less guilty about saying no to things. Pay back as much as you can each month and get yourself debt-free.
Ease your student loan burned
Another truth about the millennial generation is that student loans are large and lengthy to pay off. If you’re struggling with your student loan debt, then aim to do something about it. You’ll find it difficult to save for a deposit while you’re still paying off your loan, so it’s important to get help where you can. You could refinance your student loans at refinancestudent.loan to help take off some of the interest and to make your student loan repayments easier to manage. Taking on additional work and tightening your spending could help you to save some extra money to pay off your loan quicker.
Learn to budget like an adult
If you feel like you’re ready to take on the
responsibility of a mortgage payment, then you need to learn to budget like an adult. There are ways to budget when you’re broke that can help you start to take control of your financial situation and adopt a more mature approach to money. Budgeting doesn’t have to be all doom and gloom, set aside some money for treats/entertainment each month that will make those activities much more enjoyable as you’ll look forward to them more.
Choose sensible saving products
Once your finances are in a healthy condition, you can start thinking about investing your savings to help them grow. There are some great investment tips you can follow in your 20s that could help you save your required deposit quicker. Do your homework and don’t choose risky investments – saving your money is the most important thing, so even a standard savings account is better than nothing at all.
With the whole year ahead of you, it’s time to start thinking seriously about your finances. Start by easing your festive financial hangover and clearing any debts you’ve built up. With your goal in mind, you’ve got something to aim towards, and you really could fulfil your dream of owning a house.
Will you try any of these methods?
I know I need too!