www.rakisingh.com

Comment: I managed to get Beastie Boys and Get Up Kids references into the same article!*

Ever since reading David Bach’s Automatic Millionaire Home Owner, I have grown to despise paying rent.

No joke. Sure, I know that everyone needs a roof over their head and I like the freedom of having my own space, but paying the dear landlord each month feels akin to throwing my hard-earned cash out of a two storey window.

It literally makes the idea of having a mortgage seem divine. At least then I’m technically investing in myself.

However, if you are a recent university graduate or just starting a new job, making the jump to homeownership may just seem like a non-existent blip on the radar; however, it shouldn’t be. Preparing for that initial down payment can start as soon as today.

Even if you are just casually entertaining the idea of owning your own home one day – getting information is as simple as flipping the television over to Home & Garden or TLC or going to the library. Lots of quality information is out there to ease and help the experience.

Nevertheless, the first thing you might want to do is get out of that situation where your rent is leaving you high and dry at the end of each month. Budgeting always comes at a cost which means you might have to give up some luxuries.

Keep an Eye on the Trends

I might be playing too much Mortal Kombat, but knowledge is power. Keeping your eye on the trends can save you money and time. One of the funniest things about renting and leasing is that certain types of places can rise and fall in price due to popularity. All it takes is for some fashionable young trendsetters to upset the price-to-popularity ratio.

For example, it wasn’t too long ago that factory-converted, loft-style apartments were a cheap alternative to apartments and condos. However, as soon as these cheaper prices were pounced upon by creative young professionals it quickly became chic and cool to own one. Shortly after, the prices skyrocketed.

The recent plethora of condo and studio developments might be a sign of an eventual real estate crash. Just keep your eyes peeled and watch the trends.

Get a Roommate

Sure, you may not have had a roommate since your freshman year at university but the cost of living alone comes at a significant premium. Sesame Street taught us all to share; it was good advice. It literally pays not to be single!

The typical difference between a two bedroom place and a single apartment is usually only a couple of hundred dollars. However, once that cost is split between two people it is dramatically less than having a place on your own. Also, all fixed living costs become halved.

Sharing a space can be difficult so be wise when choosing a potential roommate – everyone needs housing and there are bound to be some who shares your desire of cleanliness.

Hold interviews, get references, ask questions! Make sure you are prepared and willing to give up that extra bit of privacy. Also, if you are considering moving in with your significant other just make sure you discuss it with them first.

Location, Location, Location

One of my favourite songs of all time is Ten Minutes by the Get Up Kids. The opening line is: “Ten minutes to downtown is ten minutes too far” and while I tend to agree with this sentiment; However, it just doesn’t make sense if you are tying to save money.

For instance, living fifteen minutes from the downtown core by subway in Toronto can save you close to $300 dollars a month in rent. You might have to wake up a little earlier for work or wait a little longer to meet up with friends on the weekend, but is that worth $300 bucks?

If you were truly ingenious you could turn a little bit of extra distance into a bevy of positive life changes – you could walk more or take your bike to work. Looking good and feeling healthy never saved you so much money!

Home

Okay, okay, I’m sorry. I know everyone reading this article just silently screamed and now has the Beastie Boy’s Fight for Your Right playing through their heads. Yes, I said it. Move-back-home.

While this suggestion might be specifically directed at the financially troubled (don’t worry there are lots and lots of us) and the budgeting hardcore, the goal is to get you out of there as soon as possible.

Moving back home may seem dorky and like something out of Wayne’s World, but in reality it could be a very smart move; especially if your parents aren’t going to charge you rent. You know, I’ve never been to a house where the food wasn’t free. Student debts will disappear and your savings will climb.

_________________________________
exercise self-constraint

If we see money, we are tempted to spend it. The key to saving is to squirrel the funds out-of-sight before realizing you have them. Almost all banks offer an automatic debit system that takes an allotted amount of money from your deposits account and puts it into your savings account. Your savings will grow without you doing anything.

No matter what your situation, a little bit of budgeting and cost-cutting will help you get ahead.