If you want to have your own little piece of property to call home – a place where you can paint the walls any colour you like, and hang paintings on every other wall – you’ll need to start saving.
The first home owner’s grant will get you started, you may be able to access other grants or stamp duty exemptions.
So, here are some tips to help you grow your savings account balance:
1. Save 10% of each pay check
An oldie but a goodie, this is a tip that always works if you’re prepared to stick with it. You simply need to pay yourself before you pay anyone else.
One way to achieve this is to designate one savings account – ideally at a different bank to your normal lender, to make it harder to access the money – and then transfer 10% of your net pay each pay period. It might mean you must miss out on a few restaurant meals out throughout the month, or you may have to brown bag your lunch when you run out of cash towards the end of your pay cycle, but it will be worth it in the long run.
2. Sell stuff on eBay or GumTree
Selling items on EBay or Gum Tree is another way that can potentially add to your savings goals and offload your unwanted household item. You may be able to convert your clutter into cash by selling things from old curtains and CDs to unused fragrances, cosmetics and clothes. Sites like www.skipmcgrath.com can show you how it’s done!
3. Pay off your debt
This isn’t exactly a straight savings tip, but it is by default, as you’ll be saving money on interest. Paying off your debts makes sense for two main reasons: it may impact your future borrowing capacity and you could use this extra payment towards your home loan. Set yourself a budge, as this is a proven method to help customers manage and reduce their debt .
4.Eliminate the luxuries
Although it’s no fun, tightening your budget a little can be an effective strategy for saving money for your first home deposit. You can start by eliminating or downgrading the luxuries from your life, and then using the cost savings to fund a savings account. You don’t have to skip everything at once, however; instead, eliminate one luxury per month, pocket the savings, and then move on to the next thing. Over a period of twelve months, you could save a significant amount of money by alternating between life’s little luxuries! For instance, you could:
Take your lunch to work every single day for a month (saving = $200)
Don’t hit the shops for any new clothing for four weeks (saving = $300)
Skip alcohol for one month (saving = $100-$500)
5. Get a part time job
If you’re serious about saving a for a home deposit and your finances are already stretched to capacity, then consider looking for extra work. by working a couple of evenings a week, you could add the extra funds to your savings goals, thereby potentially getting you to your goal of purchasing your own home sooner’Think babysitting, freelance writing or graphic design, tutoring high school students or teaching English to foreigners.
6. Visit the Money Smart website
Take a look at the Money Smart Website, there are many tips on managing your money. In particular, Tundra recommends downloading the TrackMyGoals and TrackMySpend App’s to help keep you on track.
Feel free to contact us at Tundra Business Synergy for further information Ph:(03) 85924470 or Visit www.tundramortgagebrokers.com.au Disclaimer: A one-off First home owner grant is payable to first home owners that satisfy all the eligibility criteria” Also include a statement at the bottom of the blog content: “To obtain more information, please refer to State Revenue Office :http://www.sro.vic.gov.au/first-home-owner.”
This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product.
License: Credit Representative Number 496186 is authorised under Australian Credit License Number 389328