Mortgage-Free by 35: Millennials Share Their Unconventional Strategies
As millennials, we often hear about the growing burden of student loan debt and the struggle to save for a down payment on a house. But what if there was a way to pay off our mortgage by the age of 35? It may seem like an unattainable goal, but these unconventional strategies from millennials who have achieved mortgage-free status at a young age just might inspire you to start your own journey towards financial freedom.
The Power of House Hacking
House hacking, also known as multi-family living, has become an increasingly popular trend among millennials looking to save money on housing costs and speed up their journey towards mortgage freedom. The concept is simple – buy a property with multiple units, live in one unit and rent out the others to cover the mortgage and other expenses.
Alex and His Roommates
Twenty-seven-year-old Alex N., from San Francisco, purchased a triplex with two of his closest friends after realizing that renting in the city was simply not financially sustainable. With their combined income, they were able to pay off the mortgage in just four years and continue living rent-free.
“House hacking was the best decision we could have made. Not only did we save money on rent, but we were also able to build equity and generate income from our tenants,” says Alex. “It’s definitely not the most conventional way to live, but it’s allowed us to reach our goal of being completely mortgage-free at a young age.”
Amanda and Her Backyard Tiny House
For those looking to save on housing costs without having to deal with tenants, building a tiny house in a backyard can be a viable option. Twenty-eight-year-old Amanda G. from Portland did just that, building a 200-square-foot tiny house in her parents’ backyard and using the rent-free space to pay off her student loans and ultimately her mortgage.
“Building a tiny house was not only financially beneficial, but it also allowed me to live a more minimalist lifestyle,” says Amanda. “Living in such a small space has taught me to prioritize what truly matters, and it’s been a key factor in my journey towards mortgage freedom.”
Frugal Living and Side Hustles
While house hacking and tiny house living are great ways to reduce housing costs, they may not be feasible for everyone. That’s where frugal living and side hustles come into play. By keeping expenses low and increasing income, many millennials have successfully paid off their mortgages in a short amount of time.
Richard and His Extreme Budgeting
Thirty-one-year-old Richard P., from Los Angeles, took extreme measures to cut his expenses and pay off his mortgage in just four years. He limited himself to spending only $800 per month, which meant no eating out, no vacations and minimal social activities. In addition to his full-time job, he also took on side hustles such as pet sitting and freelance writing to increase his income.
“It wasn’t easy, but it was worth it. Being debt-free at 31 was a huge accomplishment for me, and now I have the freedom to spend my money on things that truly matter to me,” says Richard.
Elizabeth and Her Airbnb Business
Elizabeth E., a 29-year-old from Austin, decided to turn her home into an Airbnb while she traveled for work and pleasure. By renting out her home, she was able to cover her mortgage plus make a profit, while also enjoying the flexibility to travel whenever she wanted. This extra income allowed her to pay off her mortgage in just five years.
“I never would have thought that renting out my home would allow me to pay off my mortgage so quickly. It’s been a game-changer for me, and I highly recommend it to others looking to become mortgage-free,” says Elizabeth.
Creating Multiple Income Streams
Perhaps the most unconventional strategy used by millennials to achieve mortgage freedom is creating multiple income streams. By leveraging their skills and passions, many have been able to generate enough income to pay off their mortgage in just a few years.
Stacey and Her Online Business
Stacey H., a 32-year-old from New York City, built a successful online business through her passion for photography. By selling her prints, offering photography services, and partnering with brands for sponsored content, she was able to pay off her mortgage in just three years.
“It wasn’t easy building a successful business, but it was worth it. Not only did it allow me to pay off my mortgage, but it also gave me the freedom to pursue my passion and control my own schedule,” says Stacey.
These unconventional strategies may not work for everyone, but they prove that becoming mortgage-free at a young age is not impossible. Whether it’s through creative living arrangements, frugal living, or multiple income streams, millennials are paving their own paths towards financial freedom and inspiring others to do the same. So if you’re dreaming of being mortgage-free by 35, take inspiration from these unconventional strategies and start making your own way towards a debt-free future.
