Smart tips for saving for your first home deposit
Saving for your first home can be a challenging experience, yet very rewarding once you’ve reached your goal. There are many ways to save for your deposit and it’s important to put together a savings plan to help you get started on the right track. In addition to making a savings plan, you’ll need to determine what your budget is and how much you need to save. For more information about this, visit here.
To give you a head start on your goal to being a home owner, we’re sharing some of our smart saver’s tips to implement into your savings plan. Look at how you can implement the below tips into your lifestyle and you’ll
H&T smart saver’s tips:
- Stick to your savings plan.
Once you have prepared your savings plan, stay loyal to it. Your savings plan won’t work for you if you don’t follow it. To help you reach your deposit sooner, keep that big goal of owning a home in mind and avoid falling prey to impulse shopping and non-essential purchases.
- Look for ways to cut down on expenses.
You can do this by looking for deals at supermarkets, limiting your spend on luxury items, bringing your own lunch to work or, instead of eating out, culturing your culinary skills and fine dining at home. These are among many ways to bring your expenses down.
- Increase your borrowing power by reducing debts.
Pay off any credit card debts as the payback interest costs can be notoriously high. Personal loans or purchase agreements can also affect your borrowing power, so the sooner you can get them out of the way, the better.
- Research ways to get extra income.
Some ideas for this are to get a part-time job or sell unwanted items at a garage sale or on online stores, such as eBay, Gumtree or Facebook.
- Make your money work for you.
You can generate passive income with the savings you already have by choosing the right place to store your deposit. Talk to your bank or financial planner, or do your own research to find an account or term deposit that is right for you to store your savings. Once that’s done, schedule regular deposits, don’t withdraw, and watch your savings grow.
- Monitor and analyse how you are doing.
Watch and analyse how you are doing each month to see where you can improve on saving. Perhaps you will find opportunities where you can reduce costs or increase your income.
As the Chinese proverb goes, “The time to start growing a tree was 20 years ago. The second best time is now.” Register with us to find out what other advice H&T has to offer or to speak with a property consultant.