Saving for your first home deposit can be daunting, especially as the cost of living is continuing to rise in Australia. But it is possible to put away an amount every week and reach your goal. A well thought out plan and strategy will allow your savings to grow upwards.
Here are some ways to help you save for your first home deposit:
Form a weekly or monthly budget
Once you have done this, ensure you stick to it. Try to avoid spending money on unnecessary items and impulse purchases. This type of spending will delay your ambitions of purchasing your own home! Which brings us to…
No more unnecessary spending!
Swiping a debit or credit card at the cash register is so easy, isn’t it? So much so that we lose track of the amount of times we do it a day. Guilty. A four-dollar coffee doesn’t seem like a lot, does it? But it adds up over time. Record and analyse your weekly and monthly spending so you can see where your money is going. This includes items such as taxis, gifts and meals. Some people can spend $200 or more on coffee a month. Guilty. This is money that can be put towards your savings for a deposit for your first home.
Open a separate bank account
This is a great strategy that will allow you to put a certain amount of money away every week or fortnight that will all go towards your home deposit. Transferring money out of your everyday account and into a separate account will help you not to spend it! If it’s out of sight, it’s out of mind, right? Go one better and set up an automatic transfer for every pay day. You could also try to make your own extra contributions whenever possible. Tip: Speak with a professional from your bank to help set up an appropriate bank account that is great for saving.
Pay off credit cards
If possible, try to pay off your credit cards and any other personal loans. You will feel great getting rid of these debts! What’s more, doing this will increase your borrowing power. Again, it’s a great idea to speak to a professional from your bank for more information about this.
Move back in with your parents
If possible, move back in with your folks. It won’t be forever! In fact, it might push you to stick to your saving goals. All in all, this will certainly help you save more for your home deposit.
Put a limit on your social calendar
Limit the amount of times you go out each week or month. Don’t feel you need to attend every event. Saying ‘no’ to some events means saying ‘yes’ to your savings account. Doing this every now and then will help you put more money away.
Make an appointment with your bank
For expert advice, it’s a great idea to get in touch with your bank and set up an appointment with a professional who can point you in the right direction. They will provide you with great advice and information. They may also go through specific bank accounts that are ideal for saving. Put this one at the top of your list of things to do.