Owning a home at a young age is everyone’s dream, especially for Millennials who want to achieve early financial stability. However, not everyone can achieve this dream. To achieve it, we must truly focus on our goals. So, what tips can Gen Zers follow to achieve homeownership at a young age? Read the full article below.
Some Tips for Owning a Home at a Young Age
The first step is to determine the desired home price. Try to set a reasonable target that aligns with your current income. Also, consider the possibility of income increases in the next few years.
You can survey locations for houses that fit your budget. Look for locations that offer lower prices to make the payment process easier.
According to the Takaful Keluarga YouTube channel, one tip from the video owner is to set a goal. He noted that house prices are increasing year after year. Therefore, he bought the house well in advance and chose a strategic location before prices increase next year.
Saving for a Down Payment with Discipline and Intelligence
One of the challenges for Millennials and Gen Z in owning a home at a young age is not having enough funds to cover the down payment, which is a prerequisite for a mortgage. In this case, there are several initial steps to take to save for a down payment from your income.
The most effective way is to set a minimum monthly savings amount of 30% of your monthly income. Set aside this amount in a dedicated account and try to prioritize saving every time you receive your paycheck.
Find Additional Income
It’s difficult for most people to save up for a down payment on a home at a young age. If you rely solely on your main salary, it can be used up to cover basic needs. Therefore, the solution is to find a side job that doesn’t interfere with your main job.
One way to do this is by working on a side job after work or on weekends. Technological advancements have made it possible for people to access jobs online. Therefore, we can leverage this opportunity to earn additional income based on our individual skills and expertise.
Saving on Living Costs
We must manage our finances well and in a balanced manner. Monthly expenses should not exceed our income. This way, everyone can reduce expenses.
Reduce non-essential expenses. We must be clever about categorizing essential needs and non-essentials. Another important thing to do is record expenses and evaluate them regularly to make it easier to achieve our predetermined goals.
Start Investing
Saving money and leaving it in a savings account for a long period of time is not the right thing to do. Therefore, try to multiply your money by investing.
In this case, there are several types or investment instruments we can choose from. So, try choosing an investment instrument that suits your abilities, namely property.
Pay Off All Debt
Before deciding to own a home at a young age by saving, it’s best to pay off all debts or credit first. As we know, debt is a burden that makes financial management more difficult. Once all debts are paid off, we can focus more on setting aside money to buy a home.
Avoiding a Consumptive Lifestyle
If you’re the type of person who still likes to splurge and spend money on unnecessary things, stop it now. This consumptive lifestyle will actually be a major obstacle to saving.
When you have a goal of buying a house, you must properly record your expenses, no matter how large. This ensures that your income is not wasted.
These are some tips for owning a home at a young age. Owning a home is everyone’s dream, especially if you’re still young and can afford it. Therefore, try some of the success tips above to make your dream of owning a home come true. /Estri
