Ready To Buy A Home? Get On Your Grind Now
A new study released by the Pew Research Center reveals that more Americans are renting now than in any other time period in recent history. Over the past 10 years thereâs been a five percent increase in renters across all demographicsâincluding different racial and socio-economic groups.
There are plenty of reasons. Home ownership is pricey. Folks are saddled with student loans and consumer debt, limiting their ability to save. And letâs not forget that African-Americans and other minority groups already, significantly lag whites in financial stability, so they are less likely to receive large cash gifts from their parents and grandparents for down payments.
SAVE THOSE TAX REFUNDS
If youâve decided to maximize your deductions and get a hefty return at the top of the year, resist the urge to âball outâ when you get the check. Put at least a third away for your âhouse fundâ and utilize an account you wonât touch. Make saving easy by placing the money in the bank account without a debit card that youâll roll over each yearâ¦after increasing the balance.
INVEST IN YOUR RETIREMENT
Some retirement funds allow you to withdraw money for a down payment on your home. If you are currently investing in one of these accounts, increase your monthly deductions by 2.5 percent for three months and see if you can live with the budget change. If so, push it up again by an additional 2.5 percent. Keep repeating until you hit the ceiling in deductions or you realize itâs the max you can save. Then dial your deduction back by 2.5 percent and coast.
ASK YOUR PARENTS
Few people have your back more than good parents. Let your mom and dad (or stepparents and the aunties and uncles that are really in your corner) that youâre working on saving for a house and you want to start a fund. Invite them to share any tips they haveâ¦and give donations to help kick things off the next time theyâre in a gifting mood. Remind them that any support is appreciated. Show your gratitude with thank you cards and periodic updates on how youâre progressing with your goal.
SKIP ONE VACATION EACH YEAR
Yes, travel is important but so is having a little financial stability. If youâre going wheels up on the tarmac three or four times annuallyâthink meetups with the crew and  baecationsâpass on one and use the excuse that youâre saving for your crib.
ASK FOR CASH GIFTS
Whether itâs your birthday or the holidays, there are times when your loved ones are still likely to give you a present, even if itâs small. Let folks know that youâre doing some longterm saving for a home and that youâd love a donation to the fund in lieu of well, anything else. Sign up for sites like Tendr that allow folks to give cash remotely, eliminating the potential awkwardness of giving and receiving cash.
SOURCE: Pew Research Center, CNN, The Balance
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