Money-Saving Pointers for the New Millennial Homeowners

Moving into a new house, a new neighbourhood, or a new state can be very daunting. This is especially true for first time millennial homeowners. Most new homeowners are only starting in their lives and careers. Getting a new house at a very young age can be very taxing. Aside from the predicted rising prices of real estate, living separately from your parents is not practical.

Millennials are cursed with the lowest relative wages adjusted to inflation. It has been the slowest and the lowest wage rate increase in the last 40 years, with slow wage growth contributing to poverty. What you can buy for $100 in 2008 can be purchased nowadays at $160.  Most millennials have to work multiple jobs to make ends meet. Wage inequality has never been this bad.

Getting a house can be an achievement for any millennial. However, paying for one is one of the most burdening things anyone can go through. Most opt for leasing out apartments instead of buying a house. Nevertheless, for anyone that intends to purchase or who has purchased a home, how can you keep expenses low while paying for your mortgage?

Keeping Electricity Costs Low

Your electricity bill must be kept low. Subscribing and installing energy-friendly appliances is key to saving up on electricity. To lower consumption, you can get an inverter type refrigerator. Inverter refrigerators run more efficiently, more consistently, and at more controlled temperatures to properly circulate the cool air inside them. Installing LED ceiling panel lights on the ceiling in different parts of your house is one of the ways you can save electricity. Led lights are known for having a lower energy consumption than fluorescent, incandescent, or halogen lights. Aside from having lower energy consumption, they are generally cheaper than other variants of lights. It also shines brighter compared to different types of light bulbs.

Controlling Your Impulses

Buying haphazardly whatever you want is made easier nowadays. Now that almost everyone has access to online shopping giving in to your impulses is incredibly easy. With a click of a button, you can buy or eat anything that you want. However, if you’re going to save up more than usual, you have to control your impulses and set a limit on your online purchases. Spending on things that are not essential to your daily life can hurt your finances in the long run. Prioritise your needs over your wants so that you don’t go into debt.

Don’t limit yourself too much, however, when it comes to shopping. Allocate a certain amount of money that you can spend on whatever you want. By setting a budget on the amount of money you can spend on non-essential purchases, you don’t deprive yourself too much.

Smart Grocery Shopping

healthy foods concept

It’s very easy to buy products that you do not need in your local grocery. Most groceries display impulse-buy products on easy-to-locate spots inside the market to tempt buyers to buy them. The best suggestion one can make to save up better is by making a list of the products you need in your own home. Sticking to that list is imperative so that you do not go over budget. Also, looking for cheaper alternatives to your favourite product is a great way to save up. Most products in groceries have more affordable options you can try.

Canceling Your Credit Card

Your credit card is not money you own. Credit cards encourage easy access to short-term loans. These credit card companies charge their clients absurdly high-interest rates. They also have the power to hurt your credit rating directly. Canceling your credit card is critical to keep your expenses low. The usage of credit cards can be dangerous. There is always the temptation to spend over the amount you can pay for. Removing that temptation from your life will only do you wonders.

Tracking Your Cash Flow

Tracking the amount of money that comes in and out of your household should make you realise how much money you are taking in. That said, having a cash flow table or chart without a budgetary plan is a useless activity. You have to make sure that the money is going somewhere. Keeping a savings account that will let you separate the money that is not being used for expenses is highly encouraged.

While moving to a new house can be terrifying for your finances, there are solutions that you can do to save up. Prioritising essential expenses over anything else is vital if you want to save.

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