Chinese vs American Views on Money | Explained From Natives

by biesingerfirejourney | Aug 11, 2022 | Budget & Save

My amazing wife is from China and came over to the United States where we met in College. I have learned much from her about Chinese perspectives on money and finance! There are interesting money concept differences between Chinese and American societies.

Coming from an international marriage, I’ve seen benefits from understanding other cultures’ viewpoints on money. I hope this blog post can help open your mind and give you added insights on gaining control of your finances.

In this article, I will discuss the 11 key differences between Chinese and American views on finance and money management. Of course, the differences mentioned come from the majority of each population. It does not mean everyone from a particular country has the same perspectives or habits toward money.

This post may contain affiliate links; please see our disclaimer for details.

1) Concepts of Spending Money & Frugality

Let’s talk about American vs. Chinese spending money views and habits. Of course, this is generally speaking since many individuals have varying views and habits with money, regardless of where they were born.

In China, frugality is a concept that has been taught for thousands of years. There are even many ancient books that teach about frugality! So having a frugal mindset and behavior is an integral part of Chinese culture.

In China, frugality is a virtue. Therefore, frugal people are praised, and spending money is criticized.

To be completely honest, when my wife and I married, she was in charge of the money. I learned valuable money lessons from her and broke many lousy spending habits.

In America, spending and customer debt are heavily marketed and even praised. I am grateful that I learned the value of saving and investing.

2) Attitude on Putting Money Towards Savings

Many Chinese people love to save as much as possible and be prepared for a rainy day, AKA having an emergency fund.

China’s personal savings rate is surprisingly high compared to the United States.

According to QUARTZ – The Chinese people’s saving rate is 45.2%, but the Americans only 18.3%. So, the Chinese have a 26.9% higher money-saving rate than Americans.

A large percentage of Americans spend too much money on wants and, unfortunately, end up in a heap of debt. So it’s essential to have a positive attitude towards saving and exercising self-discipline when spending money.

3) Chinese vs. American: Split the Bill or No?

In the United States, we typically split the bill when going out to dinner with friends, and family, and this happened when I started dating my now-wife. This is simply not the Chinese way. 

My Chinese in-laws would pay for basically everything when we went out to dinner or activities.

After Chinese kids have grown up and established a solid financial foundation, they will start paying for these types of expenses, so the Parents don’t need to anymore. Children will also frequently give money to their parents during holidays and birthdays to show respect and gratitude for all they have done.

In America, it is common to split the bill. This is not seen as disrespectful but is an easy way for both individuals to pay their own and not owe the other person(s) anything.

4) Different Perspectives on Debt

Credit cards are rare in China; most people pay cash for everything. When Chinese students graduate, they also don’t have student debt because their parents typically will pay for tuition and living expenses.

On the other hand, countless Americans have a lot of debt like student loans, credit cards, etc. I used to be in that group until I decided to get out of debt.

Our family right now doesn’t have any loans except mortgages. Through hard work and discipline, I graduated student debt free with my MBA.

Getting out of debt was challenging, but debt-free feels terrific!

The Chinese are wary of debt, which is a good thing.

5) Negotiating and Bargaining

In the USA, we do not negotiate or bargain a lot in society. China is an entirely different world in this regard.

My wife Shan told me we should always look for bargains in China. Bargaining is a way of life in China. 

For example, if you go to the food market daily to buy vegetables, proteins, fruits, etc., you will bargain with the food seller.

If you want to travel to China or do business with the Chinese, like buying items from a Chinese factory, make sure to negotiate!

Locals charge a higher price when they see foreigners. They do this because they think you are rich and don’t understand the Chinese market.

My wife taught me these Chinese bargaining tips:

• No matter how much you like the product, don’t show it! Instead, tell the seller your ideal price (a little lower than the price you want). If the seller disagrees, you say no and start to leave. Most of the time, the seller will give you a lower price when they see you are leaving. 
• Shop around; there are a lot of shops selling similar things in China, whether physical or online. If one shop doesn’t work out, check out other shops to find the same thing or something similar.

Remember, bargaining is the Chinese way! So don’t be shy to negotiate a lower price, especially if you are paying with cash.

6) Openness When Discussing Money

People in China are very open to discussing money and financial situations.

In the United States, we tend to keep our finances private and don’t openly share our salary, house values, investments, etc.

The Chinese are very open when talking about money. People will talk about which stocks they traded recently and how much they bought their houses for, and your salary is also not a secret.

If you ask a Chinese person in China how much they make, they will likely tell you.

In Chinese culture, talking about money is not impolite, and sometimes there are benefits because you can learn from each other.

In the United States, these financial topics are relatively private. People generally do not ask or ask very carefully. The other person may refuse to tell you or be offended. Being a highly individualistic culture, there is a lot of status and judgment when discussing careers and money.

7) Collectivism vs. Individualism

In American society, many children must be independent when they are 18. For example, most American kids need to pay their college tuition and care for their expenses.

When you live in your parents’ house, sometimes you must also pay rent. This is because the United States culture is very individualistic. There is more freedom but also typically less help financially from others. See the chart below from Hofstede Insights to see how different the US ranks in individualism versus China.

While attending college, my wife was shocked to hear her roommate say, “My parents told me to take everything in their house to my own apartment because my apartment is my own home.”

Much of the elderly population in the USA live in a senior center and care for themselves, but this is not common practice for Chinese people with a collectivist culture.

My father-in-law once explained that no matter how old his daughter was, she was still her kid and needed to be looked after. Chinese parents will help pay for their children’s college tuition, buy a car and house, and even help raise the next generation.

It’s also common to see multi-generational families living in the same house. My wife told me that her grandma and aunts helped my mother-in-law raise my wife when she was little. When Chinese parents are old, Chinese children will also care for them. That’s why you can see three generations living together in China.

For example, my wife’s grandmother lives with her son and grandson instead of a Senior Living Center. This is a very common practice in China.

There are pros and cons to each side: collectivism and individualism. My wife tells me how being in such a highly collective culture, there is not a lot of ‘freedom.’ Although having good intentions, Chines parents frequently supervise what children do into adulthood and are not shy to give pressure and feedback.

8) Who pays for the wedding?

The groom’s family will pay for the wedding and honeymoon in China. In the USA, the bride’s parents usually pay for the wedding.

I am very touched that my Chinese parents understood our American culture, so they didn’t get mad when we were preparing for the wedding. My wife and I had a simple wedding, and both parents helped pay for it.

We also had a very different honeymoon, lol. My Chinese in-laws came from China to the USA for our wedding, so we couldn’t just leave them alone while we left on our honeymoon.

They also don’t speak English, so we took them on our honeymoon trip to California. It was actually a lot of fun! They also paid for the cost, which helped us save money on our first house downpayment. Check out some of our honeymoon photos below:

9) Cash as Gifts or Not 

In China, adults will put cash in a red envelope, and Chinese people call it lucky money (Hong Bao). Every New Year or birthday, Chinese kids usually receive lucky money as their gifts.

Lucky money is a traditional gift for any celebration. The recipient can do anything with the money too.

Since Chinese children receive cash, their parents will teach them not to spend indiscriminately and to save extra money.

It is a fantastic finance lesson for children to learn how to save and manage money. Cash gifts seem less common in the U.S. Usually, Americans give a real gift or gift card.

After being with my wife, I have also become more likely to accept cash as a gift (or a gift card because we are in the U.S.) or to give cash to others because sometimes you give things that others may not need or like, but if you give cash, people can use that money to do what they want.

10) Food and Money

Food is a very central aspect to Chinese culture and customs.

In the United States, when we say hi, we will say: how are you?

But in China, they will say: “Have you eaten?’

My Chinese in-laws always say, “you can save everything in your life, but don’t save money on food.”

When I travel with my wife, she is also very focused on finding local delicacies. There is an emphasis not just on money, but how long it takes to cook the food, with longer cooked foods tasting even better!

My wife and her Chinese friends here say they prefer American food because it’s quick and easy, but Chinese food takes a long time. America has a reputation for fast cuisine, which has benefits but may lack in taste or nutrition.

11) College Tuition and Expenses

The last thing I want to talk about regarding American vs. Chinese money views is paying for College out of pocket or not.

Chinese people care very much about education. There is a saying in China that “Education can change your destiny.”

My wife’s parents told her she did not need to worry about tuition if she could attend a good college. They can even sell their own house to pay for her education and other expenses.

They believe giving kids a good education and obtaining a degree is one of the best generations wealths passed on to them.

In the U.S., most kids pay for their college tuition and expenses. It can be challenging to make enough money to cover tuition while going to college, so Americans have a large amount of student debt.

Related Content: How to Balance Full-Time School and Full-Time Work (10 Helpful Tips)

From Fobes, we can see some compelling numbers about student loan debt in the U.S.

• $1.75 trillion in total student loan debt (including federal and private loans)
• $28,950 owed per borrower on average
• About 92% of all student debt are federal student loans; the remaining amount is private student loans
• 55% of students from public four-year institutions had student loans
• 57% of students from private nonprofit four-year institutions took on education debt

We are so grateful that I could graduate student debt-free with both my bachelor’s and master’s degrees, although it wasn’t easy.

We knew someone who wanted to buy a house but couldn’t qualify because of their massive student loan debt and needed to pay the loan balances first.

Now we are contributing $200 a month to our two kids education funds. Each will have $100 a month to their 529 education fund.

Related Content: What is a 529 Plan? – Everything you Need to Know

We hope to help our kids as much as possible, just like my wife’s parents supported her. Many U.S. parents teach their children about finance and support them in numerous ways. I am delighted to learn about both sides’ different cultures of money and finances.

Because seeing something different will let you open your mind and improve yourself.

We hope this blog post will help you better understand the differences between Chinese and American views on money and finance.

Have you noticed any particular money or finance habits in your culture? Let us know in the comments section below!

Disclaimer:

We hope the information in this article provides valuable insights to every reader but we, the Biesingers, are not financial advisors. When making your personal finance decisions, research multiple sources and/or receive advice from a licensed professional. As always, we wish you the best in your pursuit of financial independence!

How To Save Money On Beijing Trip | 15 Tips From A Chinese Native

by biesingerfirejourney | Aug 6, 2022 | Budget & Save

International travel is not cheap, so how can you save money on your journey to Beijing, China? In this article, I’m happy to share our 15 money-saving tips to help you better budget your trip!

Many people worldwide want to visit the city of Beijing, the capital of China. My wife and I visited Beijing in 2019 and it was INCREDIBLE!

This post may contain affiliate links; please see our disclaimer for details.

Beijing is an ancient capital with over 3,000 years of rich history! It is one of the oldest cities in the world. This city has both modern and traditional architecture, making it unique and appealing.

The elements of tourism include food, housing, traffic, shopping, entertainment, etc. Of course, not all of these are cheap in Beijing.

After all, Beijing is an internationally renowned metropolis, but in general, most things in China are more affordable than in the US.

Note: The Chinese currency is Yuan or Renminbi (RMB/￥), and the American Currency is the United States Dollar (USD/$). Usually, $1.00 USD = around ￥6.5 RMB (Yuan).

1) Visit Beijing During the Off-Season.

One of the best ways to save money is to choose to visit Beijing during the off-season. You are not just saving money on air tickets and hotels, but also saving ticket money on various attractions.

Beijing attractions such as the Great Wall are divided into the low season and peak season:

1. The off-season: October 31st to March 31st
2. The peak season: April 1st to October 31st

The tickets sometimes can be DOUBLE in price during the peak season. So make sure you note the off and peak season times mentioned above.

However, a potential disadvantage of going during the off-season is that the weather is cold. As a result, there will be less green, and some tourist attractions may be closed. 

If you decide to visit Beijing during the off-season, double-check the places you want to visit to ensure they will be open.

2) Beware of Chinese Holidays!

Try to avoid traveling during Chinese public holidays! Most locals will go travel with family during major holidays.  

The flights and hotels will be more expensive, and the subway, buses, and tourist attractions will be packed with people – in Chinese, we call this 人山人海 (Ren Shan Ren Hai). The direct translation is “people mountain people sea,” but it means a huge crowd of people!

You don’t want to share the road with a billion other people.

My wife Shan also told me there is a saying: if you travel during the Chinese public holidays, the only view you can see at a tourist attraction is the backs of many people’s heads. 😆

You can view the Chinese public holiday calendar HERE。

3) Consider Chinese Flight Sites

When you purchase your flight tickets, you can check some Chinese-run sites such as trip.com, Qunar.com, etc.

Sometimes you can purchase cheaper flight tickets on these Chinese-run sites.

My wife Shan was an international student in the USA, so she has a lot of experience purchasing air flight round-trip tickets between the USA and China.

She said that summer and winter breaks are usually considered hot seasons. Additionally, flight tickets will be more expensive because many international students here in the USA will return to China. Many Chinese families will also travel to the United States during these break times.

Shan told me (from her own experiences) that flights from America to China are often around $1,000 round-trip during the hot season. 

But for the off-season, you can expect the price to be around $700, which is at least $300 cheaper for a round-trip. This will save you a lot of money for your tip to Beijing.

Keep in mind there are frequent sales and amazing discounts! So remember to keep looking and sign up for low-price alerts. 

Beijing and Shanghai are the two biggest international cities in China. So usually, they are the cheapest airports for international arrivals, especially Beijing. So if possible, consider flying through one of those cities.

4) Navigate Using Baidu Maps or Gaode Map

Alright… so this is a MUST-know tip before you go to China. 

Most of our typical methods of web surfing, navigating, and communicating with one another are BLOCKED in China. 

You will not be able to access Facebook, Gmail, YouTube, Google Maps, Instagram, Facebook, and so much more.

Instead, you’ll need to use either Chinese websites or apps or find ones that aren’t blocked in China. 

Or you can download a VPN, which I will talk about later.

Baidu Maps and Gaode Maps are the two most common GPS resources, but they only offer the Chinese language. 

They can be an excellent option if you can understand a little Chinese.

If you cannot read Chinese, then your next best choice is to use Maps.me.

Or you can download a VPN. When you have a VPN, you can access google products or other products blocked in China.

5) Get a Free VPN Trial

As I just mentioned, if you want to access websites and apps that you’re using daily, such as Gmail, Google, Google Maps, Facebook, Gmail, etc.. you’re going to need a VPN. 

Just google VPN in China, and you will see tons of options.

If you want to save money, you can take advantage of a free trial. 

Also, don’t forget to cancel your subscription when you leave China!

6) Avoid the Worst Places to Exchange Currency

Traveling aboard is exciting, but the country traveled to often does not use US dollars.

Then you will need to do currency exchange. If you can do currency conversions wisely, you might be able to save a lot of money!

Below are five key takeaways from Investopedia. I hope it can help you avoid the worst place to exchange currency.

• Currency exchange shops and airport kiosks are not the best places to exchange money.
• Try a local bank or a bank ATM to make your currency exchanges for the best rates. 
• Check if your U.S. bank offers foreign ATM fee refunds for using a foreign ATM.
• Not all currency exchanges charge the same rate.
• Tourists can get ripped off by some businesses, so it is advisable to shop around for a reasonable rate.

7-Understand Payment Methods in China

Many ATMs in China will probably refuse foreign debit cards. So if you need money, you better look for a Bank of China, ICBC, or China Construction Bank ATM. They are the main banks that accept foreign cards.

ATMs in China can be somewhat confusing to use because a lot of them start in Chinese. The good news is there is usually a button to change the language to English. 

If you still have problems, go inside the bank and talk to an employee. Some Chinese people can speak simple English. If not, a translator App can be your good friend, haha.

Don’t expect your foreign credit cards to work in China. Since Beijing is a big international city, there is a higher chance the store will take your foreign credit cards. 

In China, locals use Alipay or Wechat pay as payment methods.

Both of these two apps are very easy to use. There is a code at the checkout section. Scan the code in the apps, then confirm your payment.

But remember to always have some cash on hand. 

I still remember when we visited the Great wall. The ticket seller only accepted cash (I’m not sure if they still do that now or not).

Unfortunately, my wife Shan and I did not have enough cash.

Luckily, some friendly Chinese people helped us out. They gave us cash, and we transferred them money through Alipay or WeChat. I do not remember exactly which one because we used both daily.

Here are couple of pictures of our adventures at the Great Wall:

8-Find a Place to Stay Within Your Budget

NOTE: Some hotels DON’T accept foreign guests, but not many do this so you shouldn’t have to worry. Still, it’s best to be mindful and make sure when booking your hotel.

Luckily, the price of hotels in China is lower than in America, even in the capital city of Beijing. You can find a lovely hotel room as cheap as ￥250, around $45 a night.

American hotels can cost $200 per night and can be pretty old. So finding a very nice hotel in Beijing at a reasonable price shouldn’t be too difficult.

When you book a hotel room, you can check some Chinese-run sites like trip.com, Qunar.com, etc.

Sometimes you can find more hotel listings (especially budget listings) on these Chinese-run sites.

AIRBNB can be a good choice, especially if you find a Chinese host who can speak English! There’s a good chance they could give you some sound advice about traveling around Beijing.

9-Save Money on Food in Beijing

Food is central to Chinese culture and will become one of the most memorable aspects of your trip to China. I’m getting hungry just thinking about it!

Chinese people, like my wife Shan, are not just traveling for tourist attractions but also travel for the delicious local food that is unique to that specific area.

In Beijing, you can enjoy delicious food at an affordable price, even cheaper than cooking for yourself. The average meal can be as low as $2-$5 per person. And you can eat very well!

You also don’t need to pay tips in China, which can save you money too.

But food will be more expensive in the scenic spots because they make money from tourists, like Wangfujing Street.

Not only will the food price be higher, but sometimes the food quality and quantity are also not good.

I still remember my wife went to Wangfujing Street and went into a restaurant. She ordered a soup, but barely a little meat in it. She was so mad. lol

So if you want to enjoy yummy Chinese food and save money in Beijing, it is good not to eat at scenic spots.

10) MUST try Beijing specialty food

Yes, we need to save money on food, but there are local Beijing specialty foods you MUST try!

Peking duck is one of Beijing’s most famous and delicious foods. 

Peking Duck is usually not cheap. For example, a whole duck that can feed four people costs ￥200 RMB or is around $35 US dollars.

If you cannot eat the whole duck, you can order a half duck!

Below is a simple introduction from Forkplate:

“Peking Duck that’s been bathed in honey and sherry, air cured for hours or days, then slow roasted to produce the crisp, amber-brown skin that is its trademark. Morsels of meat and skin are rolled with scallions and spears of cucumber into a crepe-like pancake, drizzled with Hoisin sauce, and served. Then you eat it and faint with delight.”

Trust me, Peking Duck will be worth your money, and you can save up for it by cutting back on other expenses.

11) The Cheapest and Fastest Way to Get Around

The cheapest, fastest way to get around in Beijing is the subway. The Beijing subway has English everywhere, so you don’t need to worry about not knowing where you are at.

The Beijing subway is pretty awesome. You can go anywhere in Beijing within a 10-minute walk of a subway station.

I don’t recommend taking a taxi because Beijing is so big and it’s easy to get stuck in traffic. It will waste not only your money but it will also waste your precious time.

12) Consider FREE or Cheap Attractions

Tickets for some attractions can be pretty expensive.

Fortunately, Beijing has tons of cool spots that are entirely free to visit! There are tons of ancient streets, fantastic markets, neighborhoods, and parks that cost less than $1 USD per person.

For example, the Jingshan Park!

Tickets to Jiangshan Park costs less than $1 a person. The view you see will be worth so much more. It is listed as a Key State Park in China.

Upon exiting the Forbidden City, a three-story eaves pavilion called Wanchun Pavilion is on the very top of the large hill.

This mountain is called Jingshan. Jingshan and its surrounding buildings and gardens are called “Jingshan Park.”

It takes about 5-10 minutes to walk up to the top along the winding stone steps. Then, while standing at Wanchun Pavilion, you can look down on the forbidden city.

The view is incredible. It was a big “wow” moment for us! I could share a picture, but I’ll leave that up to you when you visit.

It will make you sigh how great the wisdom of ancient people is. Without the help of so much technology, they can still build such great works of art.

13) Students and Seniors’ Discount

Being a Student or Senior has significant money-saving benefits when visiting Beijing, China.

You can usually expect a 50% discount or even 100% FREE admission for students and seniors in China! So it might save you hundreds of RMB in ticket costs. 

Remember, don’t forget your senior ID and/or student ID when you visit an attraction.

14) Bargain Tips in China

My wife told me that locals charge a higher price when they see tourists, especially foreigners. They do this because they think you are rich and don’t understand the Chinese market.

My wife taught me these Chinese bargaining tips:

• No matter how much you like the product, please don’t show it! Instead, tell the seller your ideal price but a little lower. If the seller disagrees, you say no and start to leave. Most of the time, the seller will give you a lower price when they see you are leaving. 
• Shop around; there are a lot of shops selling similar souvenirs in Beijing. If one shop doesn’t work out, check out other shops to find the same thing or something similar.

Remember, bargaining is the Chinese way! Don’t be shy to negotiate a lower price.

15) Expect Tight Security Around

This tip is less about saving money, but good to know regardless.

Don’t be surprised when you see a lot of security checks at subway stations and tourist attractions.

Beijing has many historical places with hundreds, even thousands of years of history. Not only that, but Beijing is also the capital of China. Since it’s the political center of China, the government attaches great importance to the security of Beijing. 

For example, expect airport-style security checks when you enter some tourist attractions such as Tiananmen Square, Forbidden City, or even when entering the subway.

Bonus Tip: Beware of Scammers

Be careful with your backpacks and wallets because many people are around, including thieves.

Especially be mindful to keep your essential identity documents in an extra safe. It is very troublesome to lose them abroad.

Besides that, be careful of scammers. There will be scammers who will come and talk to you. No matter how good it sounds, know they are trying to trick you.

Be careful not to be deceived.

In Conclusion

Beijing is a city with a long history, which embodies the essence of ancient Chinese civilization.

It has a splendid culture and rich historical sites, which preserve and present the ancient history and culture well in the modern city. While developed with modern structures, it also retains the unique charm of old Beijing.

Beijing itself is super big! There are many attractions worth seeing, so be sure to plan your itinerary, especially when we go to a strange country with a language barrier.

Last but not least, if you don’t speak Chinese, remember to download a translator. Although translators can sometimes translate strangely, it will undoubtedly help.

Using the tips in this article, you can visit this fantastic city of Beijing and save lots of money! If you have any questions, please comment below and ask us!

Disclaimer:

We hope the information in this article provides valuable insights to every reader but we, the Biesingers, are not financial advisors. When making your personal finance decisions, research multiple sources and/or receive advice from a licensed professional. As always, we wish you the best in your pursuit of financial independence!

How We Saved $20,000 at Age 21 for Our First House Down Payment

by biesingerfirejourney | Jul 10, 2022 | Budget & Save

If you’re looking for ways to save money for your house down payment, you’ve come to the right place! In this article, I will discuss seven money-saving methods we used to increase our savings rate to save up a total of $20,000 for our first house down payment!

Welcome to our Biesinger FIRE Journey! We are a family of four and are PUMPED to share our financial insights while pursuing financial independence with you. 🙂

This post may contain affiliate links; please see our disclaimer for details.

Our First Homebuying Experience

So my wife and I were in our early 20s and attending college when we started looking for our first home.

The first lesson from our story is you can start investing at any age, even in real estate!

We worked extremely hard to cut down on expenses and save up/make more money, but we’ll get more into that a little later…

Purchasing your first home or real estate property is such an exciting time! You are not only creating a safe and secure location for you and your loved ones, but you are also buying a property that appreciates in value!

How cool is that?

Going back to the year 2016

Shortly after my wife and I were engaged in December 2016, we discussed whether we should rent or buy a home after getting married.

My in-laws are landlords in China, so my wife has always possessed an amazing investing mentality. Even though people would tell us to rent since we were still in college, she felt we should buy a home.

My grandpa was a builder who owned investment properties, so I was very intrigued with the idea of buying a property that could be turned into an asset/rental property in the future.

My main concern was that it would be too expensive, but Shan reminded me that we don’t need the fanciest property on the block and could make it work.

Not to mention we would have the option to rent it out in the future instead of paying rent to a landlord.

I quickly jumped on the same page that our first property would not be a forever home but would be an excellent investment opportunity!

So we started comparing locations and properties to find the best deal and place for our future rental.

Shan found a townhome in a stellar location – the unit was close to two prominent colleges. We both felt it would be a fantastic investment property since it would be easy to rent out in the future.

That’s when we started seriously discussing how to cut back on spending and save up enough money to purchase it!

Later in 2018, we converted our townhome to a rental property. If interested, check out this article I wrote on How We Became Landlords At Age 22 As College Students.

Quick Life Lesson Moment

A lesson I learned back then was to think, “how can I make it happen” instead of going to the default of thinking, “I can’t do that,” or “that’s too difficult at my age.”

It wasn’t in my plans originally to become a landlord at such a young age, but I realized that anything is possible if you work hard at it – and have a partner who is on the same page financially.

Success is inevitable if you don’t give up and are willing to learn and improve.

So remember, the sky is the limit! Never put boundaries or limits on yourself when it comes to achieving your goals and building long-lasting wealth.

Now let’s jump into the seven money-saving methods we used to save our $20,000 down payment!

1. Move Into My Parents’ House to Save on Rent

After my wife graciously accepted my wedding proposal, we moved to my parent’s home. We were fortunate to have this option where we could save more money.

Everyone’s situation is different; we are so grateful my parents allowed us to live with them rent-free until we saved enough down payment for our first house.

Because they made our life easier, we want to make their life easier.

We would try to help with housework like doing dishes, mowing the lawn, etc.

2. Switching Phone Plans to Mint Mobile

We love Mint Mobile, and so do our wallets! haha

3. Having a Simple yet Elegant Wedding

We are also fortunate to help help with most of our wedding reception expenses from my parents, and my in-laws helped with my wife’s dress, honeymoon trip, and some other expenses.

My parents and in-laws had a certain amount they were willing to spend to help with wedding expenses. We kept things simple, so we did not go over budget and did not need to spend our own money.

The only thing we spent money on for our wedding were our rings, but we only spent $150. I was surprised but touched when Shan said she would rather put that money towards a downpayment.

My ring is $25 from Walmart, lol. My wife’s ring is a little over $100.

According to The Knot 2021 Jewelry and Engagement Study, the average cost of an engagement ring is currently $6,000. This study found that roughly one-third of all respondents spend between $1,000 to $4,000 on their engagement ring. Only 8% of ring shoppers are spending under $1,000.

So we saved a lot on our engagement/wedding rings!

We both aimed to put most of our money into saving a down payment for our first property.

We knew our wedding would be one moment, but our marriage would last forever. 🙂

4. Set Financial Goals as a Team

One of the best ways to help us save a $20,000 down payment for our first real estate property is to sit down together and make the same financial goals.

We both want to save up a down payment and purchase our first home, and in the future, we can buy another and rent our first one.

Because we have this mutual goal, we have been working so hard for this goal to make it happen.

Setting the same financial goals together will give both of you a direction of where you hope to end up in the future.

Once you and your spouse have the same financial goals, you will be on the same page and working as a team!

Goals also motivate us and give us a positive vision for the future. 🙂

When married couples have the same goals, it will also strengthen their marriage.

If your spouse is not on the same financial page as you, I highly recommend you check out our other blog post: How to Get on the Same Page Financially With Your Spouse (9 Tips).

5. Create a Budget and Exercise Financial Minimalism

Determine what expenses are essential and what can be cut back or eliminated.

Creating a budget and living frugally are essential steps that helped us save our 20K down payment.

Having a written budget and detailed plan will make you more likely to stick to your goals to save up your house down payment.

We would not eat out a lot but instead decided to cook at home. We would frequently make a lot of food, divvy it up into lunch boxes, then put it in the freezer.

Doing this was so convenient, especially when constantly on the go. You can warm it up in the microwave when needed. No matter at home, at school, or the workplace.

We also decided to buy a lot of things second-hand, don’t buy brand new!

6. Find Ways You Can Make More Money

To save our $20,000 down payment, I switched from working a part-time job to a full-time job while also attending school full-time.

This was a great boost to our combined income. Not long after, I was promoted to bilingual supervisor with an additional bump in pay.

Having full-time work + full-time school was no easy task (as many of you already know), but it was worth it!!

Shan was an international student and was only allowed to work on the school campus as a part-time employee, but there were other perks.

We both enjoyed discounts whenever we ate or shopped on campus. Doing so helped us cut down on eating costs.

In May 2017, Shan and I were happily married and had just finished our semester finals!

During that summer, I worked an additional job to save money for our down payment (one full-time + one part-time job).

7. Take Up Side Hustles

Another way to help us save our first house down payment is having side hustles.

I heard about donating plasma from my brother and started donating it.

You can probably make around $400 a month, sometimes even more, when a promotion is going on! Depending on the place, each donation will take around one hour in total, and you can donate up to twice in one week.

It was so easy; I just had to lie down there and could read a book or play on the phone.

I sometimes donate plasma when they have a good promotion, but now the money I get is my “freedom/fun money,” lol.

All in All

An accumulation of many small decisions saved us tons of money for our down payment!

EVERY DOLLAR COUNTS!

By September 2017, we had saved enough down payment and closed on our first real estate property!

My wife was 21 years old, and I was 23. The underwriting process and everything took approximately one month to be completed.

Waiting for the underwriting and everything felt like forever since it was our first time going through the process. We were worried we might be denied the loan amount, but everything went smoothly, and we were approved.

Not only did we take a big investment step, but we also kickstarted our FIRE journey!

We have become very passionate about taking control of our finances, living below our means, and making our money work HARD for us.

I hope our experiences can give you some ideas to help you save on your house down payment!

Check out other articles in our blog, where we share our financial freedom stories with tips on personal finance & investing!

Disclaimer:

We hope the information in this article provides valuable insights to every reader but we, the Biesingers, are not financial advisors. When making your personal finance decisions, research multiple sources and/or receive advice from a licensed professional. As always, we wish you the best in your pursuit of financial independence!