What’s Missing from Millennial Budgets


As a millennial, you may soon consider home loans, such as an FHA loan, and be looking to a mortgage broker for help. A budget is critical if you dream of home ownership. Before you can compare FHA mortgage rates, a budget and what may be missing must be considered.

Millennials’ budgets today are often missing:

A long-term plan: Achieving financial stability requires reducing unnecessary spending. Look at your routines and methods of saving; investment apps are popular, but fees and links to credit or debit cards can ultimately make it harder to obtain home loans.

Emergency cash: Many millennials aren’t building up emergency savings. Three to six months of expenses saved can be a buffer if, for example, you lose your job or need car repairs or help with other unexpected bills.

Savings for retirement: A Wells Fargo study in 2016 found 41% of millennials had not started saving.1 Your budget should consider sources of income, such as 401(k) savings and Social Security. A retirement calculator can help visualize medical expenses, FHA mortgage rates, and other costs.

Negotiating skills: The ability to negotiate helps one get a fair salary increase, get a lower monthly rate on a cable/internet package, or refinance a mortgage. Later, when you may seek a fixed rate mortgage, cash out refinance, or rate and term refinance, this skill can come in handy.

When it comes to FHA loans or VA loans, Elite Financial can help. Contact us for assistance with getting a mortgage loan for the home of your dreams. For information on types of home loans you may qualify for, get a quote online or call our mortgage company at (805) 494-9930 today.


  1. https://www08.wellsfargomedia.com/assets/pdf/commercial/retirement-employee-benefits/perspectives/2016-millennial-retirement-study.pdf