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Unlock Your Dream Home: 4 Smart Saving Tips for Millennials


Owning a dream home is a cherished goal for many, especially for the thriving Millennial generation currently in their prime years. However, the soaring property prices seem like an endless hurdle. Starting to save early is the fundamental step that Millennials must take to turn this dream into reality. Dive into these 4 simple saving tips that you can apply right from the comfort of your home!

The Pandemic Challenge: Making Homeownership Harder

The journey to homeownership has become even more challenging for the 25.87% of Millennials out of the total population of 270.20 million, worsened by the COVID-19 pandemic's economic impacts (Central Statistics Agency, 2020). Massive layoffs and reduced wages are just a few of the economic blows resulting from the pandemic.

According to the Google Mobility Index, since May 2020, there has been a mere 8% increase in people moving to residential areas in Indonesia. Additionally, the high-interest rates on Home Ownership Loans (KPR) identified by the Bank of Indonesia have significantly affected property sales during the pandemic (Tirto.Id, 2020).

2 More Reasons Millennials Struggle to Buy Homes

  1. Property Price Surge Not Matched by Wage Increase The 39.7% surge in housing prices over the last decade is a significant barrier for Millennials. Coupled with the annual wage increase of only 10%, it creates a substantial gap, making it hard for them to afford their dream homes.

  2. Consumerist Lifestyle Beyond property prices and wages, the consumerist lifestyle remains ingrained in this generation. Compared to the baby boomers, Millennials tend to splurge on non-essential items, leading to financial strain.

The 'Latte factor' aptly describes this situation—a term representing urban society's financial condition, where funds are often spent on non-essential things like hanging out in cafes and buying snacks.

Imagine spending 50-60 thousand rupiahs on coffee daily. When calculated monthly, the expenditure becomes substantial, right?

4 Easy Saving Tips for Your Dream Home

Instead of wasting money on non-essentials, follow these 4 saving tips to secure your dream home!

  1. Set Your Goal Before saving, research your dream home thoroughly. Consider factors like housing type, preferred location, accessibility, whether it’s in a cluster or residence, nearby facilities, maintenance costs, and more.

    Once you have these details, create a budget plan specifying the amount to be saved and the target date. Careful planning prevents you from losing focus and helps you stay consistent with your saving goals.

  2. Save at the Beginning of the Month After creating your budget plan, start saving right after payday. For example, if you receive your salary on the 1st, allocate funds to predetermined categories, such as daily expenses, entertainment, emergency fund, insurance, and home loan.

    This way, you distribute your funds equally without reducing the intended amounts. It promotes financial stability for your family, as everything is planned at the start of the month.

  3. Use a Special Account and Activate Autodebit Saving in a dedicated account with autodebit activated is a foolproof way to stay disciplined. Your earnings will automatically be allocated to this account in pre-determined proportions, leaving no room for forgetfulness or excuses.

  4. Choose a Suitable Loan Tenure Loan tenure, the repayment period, is crucial. Home loans come in short (below 10 years) and long (10-25 years) tenures. If you plan to take a home loan, select a tenure that aligns with your capacity and income. This ensures that your dream home doesn’t compromise your essential needs like your child’s education and emergency fund.

Adhering to these 4 saving tips, combined with consistency and discipline, can lead you and fellow Millennials to your dream homes. Apart from these tips, Millennials can also explore stock investments, which can aid in achieving their homeownership dreams. Start today and pave the way for your dream abode!"