If you’re at that stage in your life where you’ve finished your studies — whether that be at school, college or university — the time has come to decide on what the next chapter has in store. Some people will have a clear vision of what they want to do, but so many of us will remain undecided.
For a lot of millennials, the choice comes down to picking between two options: stay at home, work and save for a place of your own, or set off around the globe and see what the rest of the big wide world has to offer.
It’s a difficult dilemma, and one that doesn’t really have a right or wrong answer….
What are your life goals?
According to research, 50% of millennials say they would rather use their money for travelling than anything else — a statistic that perfectly encapsulates the divided opinion on this topic. The truth is, you need to analyse your own circumstances and decide what’s right for you.
Are there places in the world you’re dying to see and may regret not getting the chance to later in life? Or are you feeling settled, and want to lay down some roots for the future, perhaps with one eye on starting a family? Each person is different, so the decision should be yours and yours alone.
The right credit card can help you save for travel
Credit card for travel — you’ll make memories either way
One of the most frequently cited reasons for heading out on your travels is the wide range of experiences you’ll enjoy, making memories to last a lifetime. But there’s no doubt that by settling down and buying your first house you’ll have just as many moments to savour.
The financial implications of making such a choice need to be considered carefully, however. A look at Land Registry data tells us that the average house price in the UK as of July 2019 was £232,710.
Using that figure as an example, if you wanted to put down a 10% deposit, you’d need to come up with just over £23,000 — a significant amount in anyone’s book.
If you decide to stay at home and save, it may be worth considering taking out a credit card, which could boost your credit score and aid your chances of securing a mortgage.
Is there a way to do both?
The dream for many people in this position, of course, would be to have their cake and eat it – and doing so doesn’t have to be as difficult as it sounds.
During your travels, you could seek out some temporary work, putting aside the extra cash into a savings account so that when you do return from your trip around the globe, you’re not starting from scratch when it comes to building up a deposit for your first home.
Disclosure: This post is in collaboration with 118 Money.