Whether you are wanting to break out of the rent cycle or you are ready to move out of home into your very own place, saving for a house deposit can seem overwhelming and never-ending. But rest assured, there is a light at the end of the tunnel, you just have to stick it out for a while.
Here are a few things you can implement to help to save for your first deposit a little bit easier. Whether you are looking to buy in the next 6 months or the next 6 years, we are sure at least one of these tips will be beneficial.
GENERAL SAVING TIPS
Tackle your Spendings First
The very first thing you want to do is go through your monthly budget and look at what you are spending your money on. Make sure you factor in everything, including gym memberships, Netflix subscriptions, and even your daily coffees. Ask yourself, is this a necessary cost or can it be eliminated. You will be surprised how easy it will be to cut down on your monthly costs.
Sticking to Your Budget
Once you have deciphered your monthly costs and streamlined them, it is time to set a budget! Be sure to factor fun and social events into your budget so you have a bit of flexibility. If you don’t use it up during the month, just pop the leftover into your savings account. When you have come to a final budget, get strict with yourself and make sure you stick to it. There is no point going to the effort to map everything out and then going off track. It might also help to set yourself saving goals, for example, to have $5,000 saved in the next 6 months, etc.
Are there any ways you can make some extra cash? This may just be taking on an extra shift or even adding a part-time job to your schedule. If you are creative or have a side hustle, maybe cash this in and start selling some of your products. You may even have some items or clothing pieces laying around that you no longer need, so maybe post them up on Gumtree, eBay or Facebook to earn some extra cash.
The reality is, you may just have to sacrifice some of the things you love in order to save for your deposit. It will be worth it in the long run!
WAYS TO SAVE WHILE RENTING
Are you currently renting and attempting to add to your savings each week? Here are some ways you can maximise your savings account and minimise your weekly spendings.
- Get a housemate – Have you got a spare room that is just collecting dust? Why don’t you find a friend to move in, or even post an ad on flatmates.com? Not only will it help you divvy up the household costs, but it will also help you share around the household chores.
- Forgo the expensive lunches – Meal prepping, making packed lunches and batch cooking are sure-fire ways to save money. You can make your lunch at home for as little as $3 a day, as opposed to spending $15-20 at your local café/takeaway shop.
- Create a mood board – Having your dream home on display in a high traffic area of your house may just be that extra push to help you keep saving.
- Declutter – Go through all your belongings and what you still need and what can go. Those unnecessary items can then be sold on Facebook, Gumtree or eBay.
- Ditch your morning coffee – Skip your daily barista-made latte and make it yourself at home. You will be surprised how quickly that $3-4 each day can add up.
- Stay on track – It can be hard to stick to saving, especially when those unexpected costs arise. However, it is extremely important to stick it out and keep chipping away at your goal. Persistence is key!
- Get walking – Ditch your car and petrol costs and start walking, riding or catching public transport more.
WAYS TO GET AHEAD AND STAY AHEAD
1. Take advantage of saving tools
- Look into budgeting calculators and apps
- On our website, we also have a mortgage and stamp duty calculator. You can access them here: Mortgage Calculator, Stamp Duty Calculator
2. Start saving ASAP
- It is never to early to start saving, even if buying is not at the forefront of your mind right now. The earlier you get on top of it, the more freedom and flexibility you will when you actually do decide to buy.
3. Seek advice
- Talk to a professional to discuss your options e.g. Real Estate Agents, Mortgage brokers, your bank, etc.
- Also, have a chat with your family and friends who have bought before, they may have some tips and tricks for you to implement.
iThink Property has a team of real estate agents in Ipswich and Toowoomba offering property sales and property management services. With a passion for people and property, iThink Property was conceived with the notion of building a team of good people to work in a real estate brand that did things differently. iThink Property focuses on transparency, communication, innovation and teamwork and has become a leading independent brand with unique points of difference. So whether you are thinking of buying, selling or renting, think iThink Property.