According to some commentators, today’s 20-somethings/millenials cannot afford to buy property because they spend too much on brunch. Since The Australian’s article went viral, it has fuelled a lot of discussion about millennials’ spending habits affecting their ability to afford a property. Obviously, the lifestyle habits of today’s youth is very different to the babyboomers generation so it’s necessary to examine how these habits affects their ability to afford a home.
We live in an age where our lifestyles and behaviours are heavily influenced by social media such that people prioritise things that provide instant gratification like eating out at trendy cafes, entertainment and travelling. We are also spoilt with having the convenience of everything at your fingertips like booking an Uber driver for pick up within 5 mins and having food delivered to your doorstep via apps like Uber Eats, Foodora and Deliveroo. A typical week could look like this: few social gatherings over a meal, a movie date, drinks and night out, and staying home for Chinese food delivered to you. These spendings add up pretty quickly! For the aspiring young home buyer, the temptations are real and that can set you back from your financial goals. If this sounds like you and you want to achieve the goal of buying your first home, here’s a few habits you can adopt to help:
- Replace cafe brunches for picnic in the park
- Consider shared accommodation if you have spare rooms
- Pick up your own takeaway food instead of ordering on Uber Eats/Foodora/Deliveroo
- Find coupons and vouchers for your entertainment – Optus/RACQ/Entertainment Book
- Limit spending by budgeting a weekly cash amount rather than be tempted to spend more with the convenience of debit/credit card paywave
- Aim to aside one-third of your salary towards your savings
- Bring lunch to work instead of eating out
- Ask your friends to bring a plate of food each for home gatherings
Do you have more tips and strategies that work for you? Share with us in the comments below.