Did you know that 39% of white millennials own a home, but only 14% of black millennials own a home?
In recent years, all millennials (whether they are white or black, female or male) have struggled to save money to buy their first home. The main cause of the struggle is pricey rental properties which make it almost impossible to save a deposit to buy their own homes.
If you are a first-time buyer looking to save money for your house, then here are some tips and tricks on how you can purchase your first home sooner.
First-Time Buyers Saving Guide
According to a spokesperson from Thegoodestate, getting your first home can be tricky: “The initial problem is saving up enough money for a deposit on your house. Following which the process of buying a house and ensuring the necessary checks are all done can also prove difficult.”
But the good news is that you aren’t alone. This means that you can learn from other people’s mistakes and take away their tips. So if we apply this to how to save for your first home then you will be able to identify ways in which you can buy your dream home sooner.
1. Save, Save, Save
The most obvious way of ensuring you can afford a deposit on your dream home is by saving everything you can. The first thing you need to do is work out how much you can realistically save each month. That is how much money can you put aside after you have paid all your current bills and still have enough money to deal with the monthly outgoings (such as food and travel).
According to the New York Times, the median income is $72,000 and the median home price is $182,500. Look at how much you earn, how much your ideal house costs, how much you can save each month, and what your monthly outgoings are. Remember that you also want to make sure you have enough extra money - you aren’t only saving for a deposit.
2. Make Your Money go Further
You can find a variety of first-time buyer schemes and that can help your money go further. You can also put your savings into an account that has high-interest rates so that you are able to save more money.
Do your research and find relevant ways that you can ensure your money works for you. Don’t just choose the first savings account or first-time buyer scheme that you come across, make sure you do comparisons of all your available options.
3. Be Smarter About Savings
If you are spending too much money on food or bills or going out, then you need to cut this down. Minimizing your outgoings is a great way to help you save more money.
When thinking about saving, you should ask yourself, “Do I really need this?” or “Can I get this cheaper?” Find cheaper alternatives to going out, such as staying in, inviting your friends round and cooking dinner. If your bills are high, try to find other providers who offer similar services for a fraction of the cost.
If it is possible, you might even want to try cutting down your costs by finding a cheaper rental solution. For example, you will be able to save more money if you are living at home with your parents and paying less rent - but this doesn’t always work for everyone.