We are well into the new year... keep your resolution going and get ready to snap up the home you've been dreaming of!
If you're trying to save a house deposit and you're not making progress, you might need some help.
We can work together on a plan to get you there in 2016!
As a rule of thumb, lenders will require you to have a savings deposit of at least 5% of the purchase price of the property. But, if possible, it's fantastic to have a deposit of 20% or more so you can avoid expensive Lenders' Mortgage Insurance. Here are our 6 top tips to help you grow your savings account balance:
- Spend less than you earn: Sounds simple, right? But putting together a budget can really help you cut down - or hopefully eliminate - unnecessary spending. It's important to be
realistic though, so allow for an occasional treat when you reach a savings target as it could be just what you need to keep you motivated. There are some great apps out there to help with this too.
- Save 10
per cent of eachpay check : Yep, it's an oldie but a goodie, and no doubt one you've heard from your Mum and Dad. But it always works if you stick at it - you just need to pay yourself before anyone else. One of the best ways to do this is to open a designated savings account with a different bank to make it harder to access your money. Then just transfer 10per cent of your net pay each pay period.
- Prepare your own meals: Making your lunch rather than buying it every day really will save you a packet. Try making a weekly trip to the supermarket - armed with a list of course as this will help you avoid buying unnecessary items. The savings will quickly add up.
- Eliminate the luxuries: We know, we know. This sounds mean. But eliminating or downgrading the luxuries in your life can be an extremely effective strategy for saving for a deposit. The good part is, you don't have to forgo everything at once - why don't you try eliminating one luxury per month, bank the savings, and then move to the next? You could:
- Put your pay television or internet movie streaming subscription on hold for one month.
- Rather than drive, take public transport or ride your bike to work for a month.
- Cut back on takeaway coffee for a month.
- Skip alcohol for one month.
- Commit to not buying any new clothing for a month.
- Invite friends around rather than going out for a month.
- Pack your own lunch for work every day for a month.
- Get yourself a 'savings landlord': Ask your parents or partner's parents to oversee your savings plan. Ask them to check-in regularly to keep you motivated and on track.
- Pay off your debt: You'll save money this way by saving on interest repayments. It makes sense because it will increase the amount of money you can borrow, and free up your hard-earned cash to use towards mortgage repayments.
