Millennials are renowned for being adventure-seeking individuals.
And so you should be! The opportunity is there, and the world is your oyster.
It’s fantastic that there is a healthy attitude to head out towards the horizon with a hunger for travel and new experiences.
However, you also face a lot of pressure to be financially stable and to start being smart with your money and investing. Because of this, it has become a bit of a Millennial dream to buy your own property – as real estate offers a lot of long-term value for savvy investors.
But how do you find the middle ground for both of these?
Vacations and holidays cost money. So do apartments or a house.
How can Millennials fulfil your aspiration to be living the dream in fabulous destinations, while trying to be committed to long-term saving?
Well, worry no more! There are various ways to compromise and we’ll show you how to quiet that responsible voice in your head so you can enjoy the best of both worlds.
How to save for a deposit to buy a property (without sacrificing your life!)
Real estate is part of the great Australian Dream – but, what does that actually mean?
Buying property can often seem like a scary thing to do, with all the paperwork and mortgage requirements you have to deal with. But aside from those things, you also must pay a great upfront cost – the deposit.
But these shouldn’t and won’t stop you from investing! After all, Millennials aren’t called ‘driven’ for nothing.
So, to help you start accomplishing your goal of investing, here are some tips on how to save for a deposit in order to buy your dream property, while NOT sacrificing the rest of your life.
Know your deposit size Knowing your goal amount is important, as it’s the largest upfront cost you’ll have to bear when buying a property. When you know a general target, it becomes less ambiguous than just “I need to save”. You may want to aim for $20,000, $50,000 or $80,000 perhaps. In general, the deposit will be 20% of the property’s purchase price. There are also some instances wherein lenders will accept a deposit for as low as 10% or even 5%. However, deposit less than 20% will require you to pay lender’s mortgage insurance – the amount which protects the lender in case you won’t be able to pay them back. MyFN can help you crunch these numbers and get set up towards this initial goal.
Examine your current spending Evaluate all your expenses. If you can, list them all so that you won’t miss anything. Analysing your financial situation will help you determine your budget and decide what balance you need.
Decide on your budget Having a well-planned budget means having a thorough direction. Since you already know all of your expenses, look for areas where you can compromise. After re-determining your spending for each week, you can now finally calculate how much to save. Make sure you accommodate for your vacation savings too!
Look for the ideal property In the end, your aim is to purchase real estate that will offer you the most value, within your budget. Whether you live in it or you lease it out, your choice of property will influence your lifestyle. To assist you make a well-informed decision, you can enlist the help of a buyer’s agent with expertise and experience in finding the ideal investment property for you.
How to save money for your dream trips?
it’s no surprise that today’s 20-somethings are spending more on travel. For Millennials, life is all about seizing the day and checking off those bucket list.
But with all the expenses (above) for your investment, is it still possible to experience what the world has to offer?
We say, YES!
Now that you already get the gist of saving money for your property deposit, it won’t be too difficult for you to do the same with your travel goals.
These are additional tips to help you achieve those dream trips:
Track your spending and set a specific budget. As mentioned above, having a solid budget begins with analysing your expenses. Evaluate all your costs and prioritise everything that can be reduced or eliminated. It also helps to know your target budget for your dream travel. Research all the expected expenses to help you be prepared.
Get another source of income. Saving doesn’t only mean cutting off your budget, it also involves perhaps earning extra money. This doesn’t have to be complicated. There are various part-time or freelance jobs you can do, even online. You can also opt to make money from your hobbies like cooking, baking or doing art crafts by offering products to other people.
Try selling some of your things. It’s time to evaluate your life and your wardrobe. We’re sure you have these clothes you’ve only worn once, shoes that are still wearable but don’t fit you anymore or books that have accumulated dust yet are still usable. Take advantage of these things and monetize them. Remember, an extra source of income, no matter how small, can still be a good addition to your pocket money for your trip!
Be responsible with your finances. Compromise, compromise, compromise! Since you want to travel, you must learn to let go of some things. You can start by reducing your utilities, cooking your own food rather than spending money eating out or quitting your vices. You can also become financially responsible by limiting yourself in incurring debts.
Travelling and investing are both attainable.
You can have the best of both worlds – if you’re smart.
Choosing between the two isn’t essential. What you must do, instead, is make a well-informed decision in finding the ideal investment property for you – all without having to compromise your lifestyle goals!
How can My Finance Network help?
At MyFN, we partner with you throughout your investment journey. We are passionate about building a strategically sound and highly diversified property portfolio which can help you fulfil your dreams.
As your trusted Brisbane mortgage brokers, our experienced team guides and supports your property investing education, so you can achieve your property goals sooner - connect with us today!