Saving for your first home deposit can seem out of reach, but with a few handy tips, you could be well on your way to your new home sooner.
We’ve spoken with Paul from Real Estate Home Loans, who has given us six easy steps to save for your house deposit.
1. Set a savings goal and make a plan
Decide exactly how much money you’re going to need to purchase your dream home, and make a realistic plan to get you there. Work out how long it will take to reach your goal, and break your goal down into smaller amounts that can be locked away in a high-interest term deposit, so your money works for you while you continue working towards the larger sum.
2. Do a household budget
Put together a balance sheet for your household. Work out how much money comes into the household (your income streams) and how much you’re paying on outgoings (expenses) each month. Make sure you’ve included a breakdown of any annual or biannual expenses so that you’re not out of pocket when they arrive.
3. Make it realistic and achievable
Make sure that your budget is realistic and achievable. It should still fit into your life, and you should include lifestyle activities like eating out and small holidays to keep it sustainable.
4. Refine your budget
Continually refining your budget means you could reduce expenditures as you go along, saving you more money in the long-term.
6. Write down the goal and put it on the fridge
You want to look at it every day! Include a photo of your dream home next to it to remind you of what you’re saving for and to keep the momentum. Update your running total each month so that you can see just how much closer you are to reaching your goal.
5. Track your expenditure regularly
Keep an eye on how well you’re sticking to your budget with a financial savings app. Some financial institutions will allow you to set up budgets or they’ll include tools that track your expenses each day and alert you when you’ve gone over your set amount.