by Zipporah Antonio | Senior Content Writer
Can Pinoy millennials afford to buy a home in real life? In a flash survey we conducted, we delved into their spending habits and found out that millennials tend to splurge more on things that bring them instant gratification such as shopping, buying a new gadget, and travelling.
But if you really want to be a homeowner, you need to sacrifice and let go of the things (i.e. extravagant expenses) that are preventing you from buying a home you deserve. Here’s how you can do it:
1. Why not cut your latte splurge once a week?
Think about the amount of money you can save if you limit yourself to one Grande or Venti cup per week.
The typical cost of a regular espresso or Americano is around P150-200, which is way pricier than a handy 3-in-1 coffee pack you can buy for P10 or less.Talk about a 1000% or so markup for a glorified coffee break.
2. Why not trade that diamond ring for a more secure, value-appreciating gift to your loved one?
No matter what Marilyn Monroe said about “diamonds being a girl’s best friend,” if you want to own a home this is one of the things you should avoid purchasing.
Planning to propose? Check out these engagement ring alternativesyou can buy. Since you will be starting a new life together with your partner, it makes sense to invest in something that you can both use.
3. Why not do more affordable, yet still great outdoor/indoor activities?
There are many ways to be fit and healthy and have fun without breaking your wallet.
Use public parks when you go for a run, or attend free fitness practices offered in your neighborhood instead of spending it in an expensive gym or yoga membership.
4. Why not invite your special someone or barkada for a home-cooked meal instead of dining in fancy restos?
This is a great opportunity for you to learn a new cuisine and improve your Masterchef-worthy skill. The total cost you’ll spend is also cheaper.
Think about it, when you go out for a meal, you won’t be spending money on food alone. You also have to include in your budget the extra service charge, tip, and transportation expenses.
5. Why not skip buying that gadget unless it can help you earn and save more?
According to our survey, 7% of our millennial respondents admitted that they splurge on gadgets. But is it smart and practical to change gadgets (smartphones, laptops, tablets, etc.) in a one or two year’s interval?
Gadgets like phones, laptops, and cameras are assets that do not appreciate in time. The moment you buy them, they lose value. So think it through before you buy a new one. If you are upgrading for your freelance or part-time work, then go ahead since it would help you generate more income.
6. Why not buy in thrift shops or ukay instead of in branded retail stores?
It is one thing to wear your older sibling’s pinaglumaan, and another to use secondhand clothes from unknown people. But shopping in an ukay-ukay can be a rewarding experience especially when you’re able to buy great finds. (An original, almost brand new Chuck Taylor sneakers for P550? Yeah, that’s a steal!)
And to be honest, it’s not about what’s “in” and trendy anymore, but rather showing off your personal style.
Hindi na “uso” ang uso ngayon!
If you’re not comfortable about wearing pre-owned clothes, why not wait for a sale? Most shopping malls and retail stores in the country hold clothes sale almost every week.
7. Why not reserve your vacation travels for birthdays or anniversaries?
Around 25% of those who answered our survey said that the biggest expense they had recently was an out-of-town trip. Meanwhile, the same number of respondents is also planning an out-of-town trip for their next big expense.
8. Why not leave early or smartly schedule a carpool with your friend/neighbor/office mate so you don’t get stuck in rush hour?
While taking a cab and other taxi services provide comfort and convenience, the cost is undeniably pretty expensive, especially when there is a surge (which typically occurs during rush hour or news of heavy traffic.) Granted that some of them offer promos, but when you sum it all up, your monthly taxi transport expenses can still be costly.
Have you also thought about finding a new home near your workplace or renting one with some of your officemates so you don’t have to travel more than two hours to and from work?
9. Why not save up first for that new phone or appliance you are planning to buy?
Half of our respondents have a credit card, with a quarter of them having more than one credit card to their name. While 45% use their cards for household essentials (grocery items or water and utility bills), majority of those who have credit cards use them to buy their luho (clothes, gadgets, social activities, and even online subscriptions). Around 30% of the respondents also use their credit card to fund their travel expenses.
Plastic money offers many advantages when used responsibly. However, when you swipe impulsively and do not pay on time, that’s when credit card use will hinder you from saving.
When you buy something using your credit card, make sure you can afford to pay it before the due date to avoid paying for interest.
Homeownership is About Discipline and Sacrifice
Buying a home is a great responsibility. It involves your time, effort, and, of course, your hard-earned money.
If you plan on owning your dream home in the next three years or so, it’s a good idea to start saving up early whatever money you can spare so you can prepare for the costs. This is also the same for overseas Filipino workers. If they want to own a home, they should follow these ways on how they can gain financial freedom.
Delayed gratification can be a good thing. The more time and effort you put in planning the trip or the purchase of something, the more rewarding the experience will be for you especially when it’s about owning your dream home.
Saved enough for your down payment by letting these unnecessary expenses go? Start exploring properties that would fit your budget and lifestyle.