I have dreamt of owning a home since I was a little girl. My parents taught me the importance of financial responsibility from a very young age, and I had my first job as a mother’s helper at 10. I quit sports to work in high school, and have had more jobs that I can count. I dumped my entire life’s savings into my first car at 16, a 2017 Chevy Trax. My mom told me that whatever I saved, they would match, which is how I was able to afford a brand new car at 16.
Over the past five years, I have been trying to bounce back from that purchase. I’m hoping to move out and have a healthy down payment for my first place by next summer. My goal is to find a duplex, triplex, or fourplex to house hack with an FHA loan. House hacking is a real estate investment strategy that involves purchasing a multi-unit residence, living in one unit, and renting the other(s). This can vastly decrease, and sometimes even eliminate, one’s mortgage. First, I need enough money for a down payment, plus some cash for renovations. Here are the steps I’m taking to make that happen.
Invest what you already have: I invested my savings (minus a 3 month emergency fund) into mutual funds because the stock market averages about 7% a year after inflation
Track your expenses: Use an app (I use Notion), a spreadsheet, or good ol’ pen and paper to see where your money is going, you’ll be shocked how much you actually spend
Eliminate silly spending: Stop going to Target out of boredom and perusing the aisles for home decor you don’t need or going to Tropical Smoothie and spending $15 because you need a “pick me up”
Shop second hand: This is sustainable and such a great way to save money, I’ve found coffee table trays, dress slacks, and decorative pillows for just a few dollars each
Pare down your subscriptions: I just got rid of Apple Music because the $5/month student membership was an unnecessary expense in my eyes, YouTube is free!
Create a monthly budget: Figure out just how much your fixed expenses (rent, utilities, phone, gym, groceries) are, then decide how much everything else gets (dining out, gas, beauty, clothing, fun, gifts) based on your lifestyle
Pick up a side hustle: I am a freelance tutor and a substitute teacher, in addition to working at the Writing Center and Target (when your budget is completely bare, you sometimes realize you have an income issue, not a spending issue)
Implement a 24 hour rule: I try my best to wait a day before buying something (otherwise my Target cart ends up full of random organization bins, fake plants, and glass jars), wait it out because you might not really want it
Dining out as a treat: I blame the dining out habit I'm having to break on my boyfriend because my family never ate out when I was growing up, now I do it way too often (go out to eat on a date with your significant other or your besties, not by yourself, pack a lunch and cook at home instead)
Stay out of debt: Do not buy anything you cannot afford to pay for in full so you do not tap into your savings (if you want a new purse that costs $50, pick up a shift that you would not have otherwise worked to cover that expenses, think to yourself “how many hours do I have to work to pay for this?” and you’ll be surprised how many things you decide against purchasing)
I hope this list provides some helpful tips for your own financial journey.
Until next time,
Meg