Millennials saving huge with shipping container homes
Millennial Couples Saving Money
Why are Millennials turning to shipping container homes? Millennial couples have to deal with plenty of challenges, some of which are identical to the odds endured by previous generations and a few are quite contemporary that the baby boomers and subsequent generations are unfamiliar with. Millennial couples are saving money and they are beginning to borrow less than earlier generations. The millennial generation has become increasingly aware. Couples are avoiding hefty mortgages to buy expenses houses. They are saving money by spending less on day-to-day overhead costs, they are borrowing less to buy things they do not need or what may not have much value in due course of time. The millennial generation is also drawn towards experiences and they have a penchant for self development rather than spending on goods or things that inevitably lose utility, value and hence significance or relevance over time.
More than forty four million Americans are indebted with student loans.
The average debt as a student loan is around thirty three thousand dollars. Millennial couples in the age group of twenty five to thirty four have an average of over forty two thousand dollars in debt. Credit card debt is a major chunk of that. Add self funded savings in retirement programs and surging prices of houses to student loans and credit card debt, you shall have a daunting task of managing your finances in a manner that can secure your future or pave the way for financial freedom. An average American has nearly forty thousand dollars in debt. This has been increasing in the last few years. It is henceforth only fitting that millennial couples are saving money by making some rational choices.
Let us consider the fundamental differences between buying a house and renting.
Many millennial couples do not have the money needed for a down payment. If they can manage to save some funds, it may fall short of the desired amount that will keep the loan to value ratio in check and hence keep the mortgage in control. The monthly installment can be cumbersome with a bare minimum down payment. This is where many people end up committing to a mortgage that is simply too self limiting. Historically through modern times, people have been unable to save a lot of money in their lifetime because of their monthly or routinely financial commitments and mortgage has always been a substantial chunk.
A house has long term capital gain. It is an asset.
Renting does not have any capital gain. However, buying and financing a new house is very expensive, limits the couple on other expenses like traveling, comfort and even can ruin their savings. Not to mention the costs with maintenance of a large house. But now, millennials are getting smarter by buying shipping container houses, which are far more affordable. With a tiny home and a minimalist lifestyle, the can save more money, travel more and invest in their business and kids.
Shipping container homes
Small affordable houses are smart financial decisions. They are cheap, reliable, require less maintenance and they have more liquidity. With all the extra money, millennials can save enough to have that cool Instagram selfie from a country abroad.