1. Move in with your parent or in-laws
Explain
that you’re thinking strategically in moving back home. The quickest
way to get into the housing market is to maximize savings, which is
difficult to do when you're paying the cost of rent in a big city.
You’ll pay your parents a token amount of rent, but most of your savings
will go directly into your house down payment fund. Tell your parents
to think of the grandchildren you’ll be raising in the house you’re
saving for.
Yearly rent at $800 per month: $9,600
Minus token rent payment to parents: $2,400
One-year savings: $7,200
Yearly rent at $800 per month: $9,600
Minus token rent payment to parents: $2,400
One-year savings: $7,200
photos.com
2. Move down one level of rental
If
you have a two-bedroom apartment, try going down to one bedroom. Or,
trying squeezing into a bachelor apartment. You could also look at
moving to a cheaper part of town, as long as it won’t jack up your
commuting costs. Get rid of stuff that won’t fit in your new, smaller
place, or store it in your parents’ basement. Don’t spend money on a
storage unit.
Yearly rent at $800 per month: $9,600
Minus yearly rent at $650 per month: $7,800
One-year savings: $1,800
Yearly rent at $800 per month: $9,600
Minus yearly rent at $650 per month: $7,800
One-year savings: $1,800
Sami Siva
3. Sell your car and take the bus
You’ll
be saving on fixed costs such as parking, insurance, gas, maintenance
and possibly car payments, and you’ll be protected against the risk of
financially catastrophic four-figure repair bills. Rent a car or use a
car-sharing service for those times when the bus won’t cut it. A cheap
bike will help you save on bus fare.
Estimated annual cost of gas, insurance and maintenance and parking: $5,000
Minus estimated annual cost of a bus pass and occasional car rental: $1,500
One-year savings: $3,500
Estimated annual cost of gas, insurance and maintenance and parking: $5,000
Minus estimated annual cost of a bus pass and occasional car rental: $1,500
One-year savings: $3,500
Robert Byron
4. Stop buying lunch
A
pain, but worth it. You’ll have to think ahead by either picking up the
right groceries to make your own lunch, or by scooping up after-dinner
leftovers. Healthier than your food-court lunch, which you’re probably
sick of anyway.
Estimated cost of buying lunch at $8 or so per day: $2,000
Minus cost of spending about $15 per week to stuff to make your lunch with: $750
One-year savings: $1,250
Estimated cost of buying lunch at $8 or so per day: $2,000
Minus cost of spending about $15 per week to stuff to make your lunch with: $750
One-year savings: $1,250
5. Dial down your vacations
New
York is out. Maybe Buffalo. For West Coasters, maybe Seattle instead of
Hawaii. Use the likes of Airbnb (airbnb.ca) to find cheap
accommodations instead of staying in a pricey hotel. Or stay home and
use some of the money you saved on hotels to try some nice restaurants
in your town. This is good practice for when you own a home and find
that fancy vacations are unaffordable without going into debt.
Summer vacation somewhere in the U.S.: $2,500
Minus the cost of a Staycation: $500
One-year savings: $2,000
Summer vacation somewhere in the U.S.: $2,500
Minus the cost of a Staycation: $500
One-year savings: $2,000
Getty Images/iStockphoto
6. No pets
Buy
a house, and then get a dog, cat, ferret, parakeet or whatever. Pets
don’t cost a lot on a day-to-day basis, but vet bills will blow your
mind if something goes wrong. Protect your house down payment fund.
Food, vet, toys etc.: $500
One-year savings: $500
Food, vet, toys etc.: $500
One-year savings: $500
7. Put a $100 price limit on birthday presents
Extravagant
presents are fun to both give and receive. But they’re a luxury for
people who are more financially settled than someone who is madly saving
for a house down payment.
Yearly cost for a couple of buying presents for various occasions: $1,000
Minus using the $100 present limit: $500
One-year savings: $500
Yearly cost for a couple of buying presents for various occasions: $1,000
Minus using the $100 present limit: $500
One-year savings: $500
Matt Rourke/AP
8. Cut your cable TV and landline
Almost
like heat and hydro, an Internet connection is essential. But a home
phone is dispensable if you have a smartphone, and cable TV can be
replaced by Netflix, watching shows online and using an HDTV antenna.
Also, try buying up DVDs of movies and TV show seasons at garage sales,
or find stores that sell used DVDs, CDs and videogames.
Yearly cost of cable and home phone: $1,200
Minus approximate cost of a Netflix subscription: $110
One-year savings: $1,090
Yearly cost of cable and home phone: $1,200
Minus approximate cost of a Netflix subscription: $110
One-year savings: $1,090
Stockbyte/Getty Images
9. Halve your spending at restaurants and bars
Studies of Generation Y spending habits show that going out to eat and drink is big. Hey, everyone needs a hobby. But this one is too expensive for people who are set on buying a house. Aim to eat out less often, and rather than pay marked-up restaurant or bar tabs, grab a beer from the fridge.Annual cost of spending $250 monthly: $3,000
Minus half that annual cost: $1,500
One-year savings: $1,500
TOTAL ONE-YEAR SAVINGS FROM ITEMS 1-9: $19,340
