Saving for your deposit can seem like a tricky task for most. With so many temptations that sink into your bank account, it can sometimes feel like you can not make progress towards your deposit! Here are some tips that we suggest you consider to make purchasing your home more achievable.
Create a Budget
Before anything, you’ll need to make a budget. This is key as it will help you visualise the money in your household and where it goes. Here are some of the main components you need to consider in your budget that are applicable for most people.
Income: What is your net income per week, fortnight, month or annum etc.
Expense: What are your necessary expenses? This will include groceries, rent, transport etc
Savings: How much are you currently saving?
Other incomes/expenses: This can be secondary incomes from side hustles and general expenses such as going out with friends.
Sacrifice wants over needs
We all love treating ourselves to a good takeout or grabbing a coffee with friends. $30 here, $5 there might not seem like much, but these relatively smaller expenses certainly add up. Let’s say every Friday night you treat yourself to a couple of drinks after work that costs you $25. That does not seem like an extensive amount of money, but if you do that every week in a year it equates to $1,300! What about streaming services that we love to use? Say you have a second-tier Netflix subscription – that is an additional expense over $200 per year. With people subscribing to multiple streaming services more often, these can really start to stack up. While you should always treat yourself on occasion, ask yourself ‘do I really need this?’ If there is hesitation in your answer, then you should save the money.
Look for money saving options
When shopping for your essentials there are many ways to save. Shop for groceries where the best deals are on and if there is a great sale on utilities like toothpaste, buy in bulk and save! If you have the option to move in with family for a shorter period of time for less rent than your current situation, do it. These kinds of moves might not lead to your ideal lifestyle in the present moment, but sacrifices are necessary when saving for your home.
We all need to sacrifice a little bit in order to reach some of our ambitious goals. But big goals are achieved through small steps. By taking initial action towards saving for your deposit, you will begin to see results very quickly! If you would like to discuss options or are seeking general advice, please click HERE and one of our friendly client consultants will be in touch.