In order to either confirm or dispel myths about millennials and home ownership, we surveyed 22 millennials about their financial situation. This is part 2 of the series. To read part 1, click here.
When asked what they sacrificed in order to save for their deposit, some responses were:
“’I’ve always been quite frugal, so mainly didn’t eat out a lot, I don’t buy new clothes very often. Have found cheaper hobbies such as walking, riding and hiking. Kept my very cheap old car and maintained it myself instead of buying a new one.”
“Instead of opting to eat at restaurants we stayed at home for meals.”
“The big one was eating at home as much as we can”
“Eating at home, buying things we needed not wanted”
“We didn’t eat out as much as other friends – we still don’t!!"
Abstaining from eating out was one of the most common sacrifices made. Perhaps there is something to the controversial notion that if millennials simply stopped buying their avocado on toast, they could save for a home deposit?
Our savvy home-owner millennials were quite happy to share some saving tips with us:
- Only spend what you need to. Don’t spend your money just because it’s there. Necessities plus a little to make sure you’re still enjoying life!
- Live within your means. After paying the bills and living expenses, if you have any addition money left over just before the next pay day, put that money into your savings account.
- Create a budget, know how much you can save and keep it as a priority
- You don't need that. You don't need anything.
- Set a goal and stick to it with a weekly payment in an account that is not easy to access
- Limit take away meals, cook at home, shop once a week, save before buying things.
This sounds hard, however our millennials still have fun!
- “In saying all of this we still loved life and lived it to the max. You don’t need to spend money to be happy :)”
- “Still did things that brought us joy!”
Stay tuned for details on how much their mortgage repayments are, and if they are struggling to make them...