U.K. millennials may love their coffee, deli sandwiches and avocado toast, but eating at cafes on a regular basis may be one of the worst financial habits they can adopt. Strutt & Parker, real estate agents and property consultants, have released a list of the top six expenses that individuals and couples in the millennial generation should eliminate in order to save for a new home deposit.
Australian Millionaire Tim Gurner Couldn’t Agree More.
The Strutt & Parker recommendation to drop these little everyday take away foods arrives on the heels of Gurner’s own recommendation to stop buying avocado toast. Gurner’s recommendation to young couples also promised a better chance at being able to afford a home. While Gurner’s advice was met with considerable online criticism, the real estate consultants seem to have a similar take on the subject.
Strutt & Parker’s list recommended reducing one restaurant meal per week in favor of saving that money. This habit would save a British couple an average of almost £6,000 every year. By eliminating take-away meals, another £2,640 per year. By bringing lunch every day instead of buying a salad or sandwich, yet another £2,576 per year could be kept in the bank.
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Also on the list were an annual holiday away, lottery tickets and yearly smartphone upgrades. They would save a couple an average of £700, £832, and £154 respectively per year.
By giving up all those little luxuries, the average millennial couple would save an average £64,000 in a five year period, says Strutt & Parker’s list. The average home mortgage deposit in the United Kingdom is £94,000. Most millennials find that if they can save around two thirds of the total amount they need, they can usually get their hands on the rest by way of gifts or loans from their families.
home, the average home price at the moment is £474,704, according to Business Insider statistics. That said, only 31 percent of millennials in the United Kingdom own a home, says HSBC data. That trend is quite similar to that of United States millennials, as HSBC estimates that 35 percent of Americans in that generation own property.
While slashing these little luxuries for five years may mean that a home could be in a millennial couple’s reach, whether or not they’d be willing to give them all up for that half decade has yet to be seen.