First of all, yes it is possible.
Buying a home as a millennial is a hot topic today and for a good reason. We grew up expecting to be able to own a home of our own and for many, that goal seems flat out impossible.
The blueprint is out there because, guess what – SOME MILLENNIAL’S OWN HOMES! Here are the top tips I have heard from clients, customers, friends and strangers I have met on how they made the goal of owning a home a reality.
Know where your money is going
- It is easy for your parents to say you should be saving 20%-30% of your paycheck and if you are already taking a decent chunk of your paycheck and sending it directly to an account you do not touch, then stop reading this paragraph because you are ahead in this area already. Let’s be honest, if you are continuing to read, you have probably had to open your piggy bank to get cash for a night out at your favourite pub.
- How do you start saving aggressively? Look at how much money you are spending on:
- Entertainment (Fort night, movie tickets, concerts)
- Alcohol/Bar Tab’s
- Fast Food
- Once you see how much you are spending on these areas (per month), I am willing to bet that you will opt for a $9 Netflix account and grocery store popcorn instead of a $45 night at the Cinema for a movie that was definitely NOT worth the 3-5 hours of work needed to make that money.
Take a leap of faith
- There is a reason people say, “Money does not buy happiness”. If you are like me, you may have a hard time motivating yourself to make money if you do not have something that needs the money you have earned. I am not saying you should go out and make a big commitment without planning, but if you have been thinking of buying that first car or taking a chance on a new job that may increase your risk but also increase’s your reward, DO IT!
- The human race is exceptional when put into desperation mode. Not sure how you can save up $50,000 for a down payment? Get yourself a moderate loan for a business venture and notice how your mind starts to force you to innovate and come up with solutions on how to make those loan payments.
Start small and build over time
- If someone came to you and said, “you can live the life of your dreams if you can pay me $5000 in 12 months”, how would you react? Some people would think its easy and put it off until 11 months and 3 weeks later – they will show up at the end of 12 months wondering how they failed so poorly when they have $100 to their name. What if we changed the goal to: “You can live the life of your dreams if you can save $200 every paycheck”. That does not seem so daunting of a task, does it?
Figure out what matters more
- This goes back to point number 1…Let’s say that you go through your credit card statements and notice that you are spending $200 per month at the LCBO, $400 per month eating at various fast food places and on top of both, you spend $150 on Uber getting home from downtown.
- You do not have to give up everything you love because the days will get very grey and that will kill any motivation that you will need to start working toward home ownership. BUT, what if we could drop those numbers by 50%? Based on the example above, we just made an extra $375 per month ($4,500 per year) that can go to a mutual fund and start growing. Is owning your own home worth giving up a couple nights every month? That’s up for you to decide!