SavingFirst Home Buyers Australia
Saving can help you achieve any financial goal. As a First Home Buyer, according to statistics it take approximately 4-8 years to save up to a 20% deposit based on the average salary of a first home buyer. This time can be cut down by using various saving strategies such as budgeting, savings accounts, limiting bank fees etc.
Budget your moneyCut back on the extras
How can i do this?
The most convenient way to see where you can cut back is by working out a budget. To do this effectively you will need to note down your essential costs such as rent, bills, food and entertainment and subtract this amount from your income, the amount left over is what you could potentially save toward your deposit.
If you find that your budget will be too tight to reach your desired target try for something more realistic, a good idea is to set smaller savings goals along the way and reward yourself when you achieve them. Check out our budget calculator.
Cutting down expensesMove back into the family home
How can I achieve this?
While it may not be too exciting the thought of moving back into the family home with mum, dad and your sibling you don’t get along with, many young people choose to move back into the family home while they are saving for their first house as this saves them a large cost every week.
Rent is likely to be one of your biggest expenses most probably on par with a mortgage repayment so if you can cut this right down until you are ready for your own home mortgage, you could potentially increase your savings very quickly.
Make your money work for youTake advantage of extra hours at work and set aside money into a savings account
How can I do this?
It is best to make the most of your money and have it work for you.
One way is to transfer your desired savings amount from your everyday account to a delegated savings account, this way you won’t be tempted to use the cash and you will earn more interest each month.
Take advantage of any extra hours/shifts at work and save the extra funds in addition to your budgeted savings.