How to save for a house deposit?
Do you dream of owning your own home? Have you made a start on your house deposit fund? Or maybe you haven’t started yet and are not sure where to begin? We’ve got you covered with our simple hints and tips, and before you know it you’ll be set up and on the way to buying your own home. Here we explore those tips:
Set a goal amount! You can’t save effectively if you aren’t sure how much you need to save! So let’s break it down. Firstly you’ll need to have a rough idea of how much you’d like to buy a house for. Once you’ve come up with a realistic house purchase price, the best place to start is with 5% of that figure. I.e. if you are buying a house for $200,000, multiple it by 5% and your goal figure is $10,000. Most first home buyers will require a MINIMUM of a 5% deposit, that’s why we’ve started here. Now the more deposit you have the better for you so set your sights high, but always start with a minimum amount.
Track your spending! Hold yourself accountable by using apps and spreadsheets to track your spending. You’ll be amazed at how much money you can spend when you start to account for every dollar. A budget is also a good way to see what you are spending on, and start to decide what compromises you are willing to make to get into your own home. And believe me, you will need to make some sacrifices in order to buy your own home. Use the needs vs wants rule. If you need it it is an acceptable expense, if it’s something you don’t need and just want - then perhaps it’s one to review whether you spend money on it.
Set a realistic budget! Again use the apps and tools that are available to help you with this. We say set a “realistic” budget because if it’s unrealistic you are less likely to execute it well. you don’t need to cut yourself off from enjoying life to save for a house deposit, but set a realistic time frame to save your goal deposit and this will help you stay on track.
Swap your credit card for a debit card! I’ve said it before, lenders severely dislike credit cards and they can inhibit your ability to borrow money. If you switch your credit card for a debit card you’ll very quickly realise what you can and cannot afford. A debit card is linked to your own money, where as a credit card is linked to a lenders line of credit.
Save, save SAVE! The final tip is to just start and do your best. For each day that you wait, it’s a day extra you’ll have to wait to buy your own home. We always say the younger you can start saving the better. Take advantage of living at home and having reduced living expenses to save as much money as you can.
If you would like to know more about saving for your own home, or to explore your lending options, be sure to reach out to Jackie. She’ll be more than willing to help!
0409 563 892
Jackie@fimafinance.com
