How To Save More Money For Your First Home
Thinking about getting into the housing market and owning a home of your own? Saving for a house deposit takes time, years for most people, but there are ways to save for home deposit and get into a house of your own sooner. Whether you’ve already started saving or you’ve just decided it’s time, here are some handy tips to help you save for your home deposit.
Stick to Your Budget
It’s one thing to create a budget and something else entirely to stick to it. If you want to build a home in Brisbane, Gold Coast, Sunshine Coast, or Ipswich, you need to stick to the budget you create.
For many people, this means home cooked meals rather than eating out and minimising nights out. It will likely mean keeping expensive holidays to a minimum and cutting down on ‘nice-to-haves’ like extra clothes and daily coffees at the local cafe. However, there’s no need to be cruel to yourself when you’re putting together your budget, ensure you factor in social events and personal items, however, when it comes time ensure you stick to that allocated budget.
If you don't have a formal budget, you can get started with our budget planning calculator.
Put Your Savings to Work
Letting your savings sit idle in a savings account won’t get you into a new home any sooner and you may find your savings aren’t even keeping up with inflation. Shop around for a savings account with the best interest rate and look at long-term accounts as well. If you’re going to save for several years, saving in term deposits makes good financial sense. What’s more, the frequency in which you save is important. Save every week, and you’ll put more away in the long run and get there sooner.
While saving for a deposit it’s imperative to avoid debt and look for ways to cut your existing debts. Avoid taking on new debt wherever possible and consider putting the money that you’d otherwise save for a deposit into any personal loan and credit card debts first. This way you can eliminate the ongoing interest and put more into the deposit in the long-term.
Consider a Part-Time Job
Many Australians work a second job when saving for a home deposit. This isn’t ideal or even possible for many people due to family and other commitments. However, if there’s an opportunity to work a few more hours a week, why not make the most of it? It doesn’t have to be for a long time either. Freelancing on occasion or working part-time for six months and saving everything you earn could slash the time it takes to save the deposit.
Know What You’re Eligible For
Depending on your situation, there’s a range of Government Grants available to you to make buying your first home more achievable. Discover what Government Grants you could qualify for.