How to Save in Your 20s, Afford a New Home in Your 30s
Not everyone is ready to take out a Florida mortgage loan in his/her 20s. In fact, most people might be better served to save money and wait a few years.
The initial goal of college graduates shouldn’t be to own their own house. That’s not realistic. Instead, simply striving to remain out of debt and, therefore, remain in strong financial standing for when you can consider the Florida mortgage process, is a worthwhile endeavor. Let’s talk about how.
Graduate college … pay off student loans?
A majority of individuals must deal with the issue of student loans upon leaving school. According to the College Board - an association of schools, colleges and universities - 73% of graduates from four-year nonprofit private colleges had student loans outstanding, with $19,400 typically owed.
Combine this fact with a lower salary for recent graduates and staving off piles of debt can be a challenge. But it’s one you must try to meet! How come? Because your credit score is a key component of any Florida home mortgage application; you need to consolidate debts in order to be approved for the rates you want.
With any luck, your post-college financial struggles will ease as you approach age 30 and start getting some decent salary increases. THIS is when you should look into purchasing your first home for the most part. After all, the typical first-time home buyer is 32, according to the National Association of Realtors.
So … if you’re gonna to look into a Florida home loan and start funding the 401(k) in your late 20s or early 30s, you’ve got to reach that age in reasonable financial shape. What does it take? Here are a few tips.
1. Don’t expect to live like your parents. It took them 25 or 30 years in the work force to achieve their current standard of living. If you’re eating out as often as they do or taking equally extravagant vacations, you’re probably spending too much. Make a budget and stick to it.
2. Handle credit cards with care. Using a debit card makes you a more careful spender because you know the money is coming straight out of your checking account.
While carrying a credit card balance is foolish, don’t necessarily rush to pay off student loans. The interest rate may not be that steep and the it should be tax-deductible. Instead, if you have spare cash, put enough in your employer’s retirement plan to get the full matching contribution and then earmark the rest for a house down payment.
3. We’re serious Mooch off Mom and Dad. Moving home for a few years after college may crimp your lifestyle, but it should also bolster your bank balance. Your friends may make fun of you now - but when you’re approved for that Florida home mortgage loan and are living it up in a place of your own, they’ll wish they had followed your actions.
