One of the biggest challenges of buying your first home is being able to save the deposit. But with these tips and tricks, you’ll be on your way to home ownership in no time…
Devise a good savings plan
And make sure you stick to it! There will always be surprise expenses that crop up, like emergency trips to the dentist or unexpected car repairs, but having a plan and a specific goal will make saving your home deposit that much easier. “Small amounts of regular savings can lead to an impressive total over time and will demonstrate your consistent saving to a lender,” adds Nicholas Gruen from Peach Home Loans.
Draw up a budget setting out your income and expenses, so you can see exactly where your money is going each month – and you can then work out where (and how much) you can save.
Find something to give up!
As the saying goes, ‘No pain, No Gain’. You can’t expect to buy your own home without making at least a few sacrifices, right? “If you smoke, cut down or give up,” advises Gruen. “If you go out twice a week, go out once a week. This way, you can plan to save small amounts of money on a regular basis.”
Substitute the little things
It’s amazing to see just how much you could save if you decide to give up some everyday items, in order to squirrel away your savings for a home deposit. If you’re interested in learning how much you could save by hitting the tap instead of buying bottled water, or skipping the dry cleaner in favour of pressing your own shirts, check out this handy dandy calculator created by RAMS Home Loans.
Monetise your spare time
Work your skills to your financial advantage by figuring out a way to earn money in your spare time. Whether it’s a casual babysitting job, selling crafty bits and bobs on Etsy.com or selling old clothes on eBay, there are plenty of ways you can turn your leisure hours into profitable pursuits.
Save your $5 notes
This is an easy way to accumulate cash without feeling like you’re sacrificing too much. Simply empty your wallet of $5 notes every day, or every other day, making sure you tuck them into a sealed jar or tin that you can’t access. After a few months, take your tin to the bank and deposit it into your high interest savings account. You’ll be amazed at how quickly the cash piles up!