This article is proudly brought to you by Mortgage Choice
Whether you’re just starting to save for your first home, or if you’ve been following a savings plan for some time, our 6 tips can help you fast-track your way onto the property ladder!
1. Establish a budget
If you have never used a budget before, it’s a worthwhile step. It’s a simple way to get an overall view of your finances, and bring control back to money management.
Your budget should include how much money is coming in, and how much is going out over a period of time. The more detail you include, especially around spending, the easiest it is to identify areas where you can cut back and find extra savings for your first home deposit.
Plenty of apps are available that make budgeting easy.
2. Set a savings target
Saving is always easier when you have a clear goal to work towards really, lenders like you to have a 20% deposit. In other words, if you are looking to buy a home worth $500,000, you should aim for savings of around $100,000.
3. Add any windfalls
Add any unexpected windfalls such as your tax refund, work-related bonuses or any cash gifts to your savings pool. Treat these like forced savings, and put them in your pot immediately. They can really add up in the long run!
4. Now put your money to work
Don’t just save money, make it work for you. Shop around for a savings account or, maybe lock part of your funds away in a term deposit – it can mean earning a higher rate and it helps you resist the temptation to dip into your savings.
5. Put your savings on autopilot
Setting up an automatic payment to your chosen savings account will ensure your money is saved before you’re tempted to spend it. Keeping your spare cash ‘out of sight, out of mind’ makes it easier to save.
6. Reduce debts
Lenders will want to know about any other debts you have such as a car loan, as well as or credit card limits, not just the outstanding balance. If you’re looking for advice around how to pay off debt faster or to consolidate your debts, or if you just need advice on how to reach your saving goals sooner, our financial advisers can provide the support you’re looking for.
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regard to your circumstances.
