19 Nov Saving For A Deposit
Saving for a long-term goal, such as the purchase of your first home, can be challenging when we live in a culture that encourages immediate gratification and a spend, spend, spend mentality. If you’re looking to set yourself up in a position where you can purchase a home in the future, saving for that all-important deposit is a crucial first step in the right direction. Saving doesn’t have to be a drag – in fact, we’ve come up with some easy steps to help you save the dollars you need to see your first property secured.
Be honest about your regular budget
Too many of us think we spend less money than we do, or find ourselves confused when we’ve yet again run out of money two days before payday. Gain control of your financial situation by sitting down and truly evaluating how much you spend in which areas. Take into account every detail – fuel, takeaway, babysitting, anything that’s a regular expenditure. Once you’ve put your budget together, you may be able to identify some areas where you can cut back on your expenditure, and reallocate that money into your deposit savings account.
Look for extra income
Along with cutting down on expenses, increasing your regular earnings is a great way to build into your deposit on a regular basis. Do you have a marketable skill that could bring in some extra income on the side? Whether it’s mowing lawns, ironing, tutoring, your very specific skills could be a powerful way to increase the money landing in your account and help to build your savings on a regular basis. Consider yourself a hustler – look for any way you can to bring those extra dollars into your savings account!
Understand the size of the deposit you need
Saving for a specific goal is much easier than saving for a general goal. By knowing how much you’ll need as a deposit, you’ll be empowered to gain further insight into how long it will take you to reach your goal, which can help fuel your savings determination.
Pay yourself first
It’s all too easy to save less than we hope from each regular paycheck. Instead of getting to the end of a paycheck and putting away whatever is left, set aside a pre-determined amount as soon as your pay lands in your account. It may even help to open an account with another bank so the savings you transfer into your deposit account are harder to access – remove temptation in any way you need to in order to ensure your deposit keeps growing regularly through your income contributions.
Even if you’re not about to apply for a home loan, working with a mortgage broker can help you get set up in a strong position for when you’re ready to hit the go button. Give us a call at 0488 814 148 for a chat about the deposit you’ll need for your budget range and let’s work backwards from there!