Going to college is a wonderful experience for a lot of reasons. It’s an opportunity to make new friends and develop skills that will support your career for years to come. College is also an opportunity to discover your independence and unlock opportunities to grow away from home. By the time you’ve finished your degree, and you’re moving out of student accommodations, you may be keen to put a deposit on your first house. Before you jump into buying a place with your previous roommates, it’s worth making sure that you have the right plan in mind. Here are some top tips on saving for your house when you’re done with your degree.
First House | Consider Moving Back in with Family
When you’ve finally found your independence by moving away from your parents, it’s difficult to go back to the way things were before. However, living at home should reduce your outgoings significantly, so you can save more money for the house of your dreams. If you’re renting a place while you save, it’s going to be much tougher to get the initial deposit that you need. If moving in with family isn’t an option for you, it might be worth considering things like sharing a small house or apartment with a close friend. This should once again take your outgoing expenses down a notch.
Have a Plan for Your Student Debt
It’s tough to save up for a home when it feels like you’re constantly using all your wages on your student debt. With that in mind, it might be worth looking into another way to cut costs and to learn how much you’ll need to save to cover your bills each month. Refinancing your student loans and any credit card loans you had while you were in college into a new loan with a private lender can sometimes be an excellent choice. You can go online to use a student loan refinance calculator to check how much you can save. Once you reduce your monthly interest payments, it’s easy to just watch the savings add up.
Learn to Live Frugally
You’re probably pretty familiar with living frugally after your time at college. However, it’s easy to let the lessons you’ve learned about pinching pennies disappear when you get your first job. Continue to live as cheaply as you can when you get out of college, by planning meals in advance, buying bulk items for a discount when you can, and cutting costs wherever possible. If you stick to a frugal lifestyle for a little longer, you’ll be able to put more of your wages away towards the home you want. After that, you can adjust your budget to suit your lifestyle.
Find Multiple Ways to Earn
Finally, don’t overlook the importance of having multiple sources of income. If you’ve nailed an apprenticeship in a company that you really want to work for, that’s great, but only if it’s going to pay the bills. If you want to continue pursuing your dreams, you might need to look into a second source of income too, such as a part-time or freelance job. There’s plenty of flexible employment options available today for those who need to earn extra.
