Even the best savings plans can come unstuck. Follow our tips for saving for a home deposit and watch that bank balance grow.
1. Understand the target
Do you know what’s hard? Saying ‘no’ to chocolate cake. But do you know what else is hard? Saving when you’re not sure exactly how much you need.
Set yourself a firm savings target. A good place to start is talking to your broker – they can tell you how much you can afford to borrow and what type of deposit you need. Having a history of genuine savings (apart from paying your rent) shows that your serious. Plus, they can help you with the ins and outs of the minimum deposit for a house, like the extras you’ll need to consider if you save 5% instead of 20% for your deposit.
2. Simplify.
Yes, that applies to everything. What does your life look like? If you’re like most of us, you’re draining your bank balance with dozens of small transactions and macchiatos. Maybe you’re splurging on $20 smashed avo on toast every weekend? There are always gigs to check out, weekend getaways to enjoy and new burger joints to try.
If you’ve hit a savings snag, it could be that you’re trying to cram too much into your life. It all draws energy – and cash – away from your savings goal. Re-energise your first home deposit plans by cutting back on “stuff” and focusing only on the activities you really enjoy. Think of all the celebrating you can do just as soon as the keys to your first home are in your hands:
3. Build a support team.
Even the best savings accounts in Australia can still vary greatly when it comes to interest earned. Check your rate. Right now. If you’re not earning a great rate, it’s time to look for a better deal immediately. Why should you do all the hard work on your own?
Enlist the support of a bank that’s willing to do part of the heavy lifting for you. Grow your deposit in a savings account that does its fair share with a competitive interest rate.
4. Cut yourself some slack and cake.
Saving is hard. It means not being able to do the things you like, and instead of doing them you actually have to worry all the time. It can feel like a pretty tough slog.
If you’ve lost your savings mojo, you might just need a break. Relieve the pressure by going back to basics. Instead of aiming to save $100 each week, just aim for $20. Refuse to beat yourself up about it.
Stick with the new plan for a week or two. Then, start to ramp it up a little. Save $50 for a few weeks. When you’re feeling it, boost it to $80. Each time you push a little harder, reward yourself with something that doesn’t cost much, like a delicious treat or a fancy craft beer.
5. Develop a personal mantra.
If this all sounds like first home buyer boot camp, that’s okay. Saving for a house deposit is a real challenge and you’re already taking steps in the right direction by getting started.
With positive reinforcement, the right savings account and commitment, you will be in your own place before you know it.
Get in touch today on 0419 898 898 to discuss your goals.
This article is prepared based on general information. It does not take into account individual financial objectives or needs and is not financial product advice.