Four Simple Ways to Save for a House Deposit
You’ve designed every detail of your dream home or planned out your real estate empire, but the need to save up that deposit blocks you at every turn. The good news is, with the right approach, your deposit doesn’t have to slow you down for long. Here are four tips for you to try.
- Follow the money
Nobody likes the feeling of not knowing where their money goes. The sooner you lose that feeling and start tracking what you’re spending your cash on, the sooner your deposit could grow. When you’re tracking your personal expenses, the little details are important. To get a real understanding of your spending habits, take a look at your transactions over the last 90 days and do a self-audit. By categorising where you spend your money, you’ll be able to see where you can afford to spend less.
- Your budget shouldn’t break you
As a budgeter, you have a breaking point. Let’s face it, if you take away every last treat, you’re actually more likely to fall off the wagon and you’ll end up saving nothing. Pick one or two things every month that you’re not going to feel guilty about – a movie, a massage, a night out – and really savour it.
- Your savings need a saviour
The biggest danger to your savings is time. An unexpected dinner here, an extra coffee or 20 there, and suddenly the decimal place in your account has jumped a couple of places to the left. The longer you keep your savings in your everyday bank account, the bigger the chance you’ll chip away at them until they’re gone. So save your savings. Set up an automatic transfer from your everyday transaction account to your savings account every pay day. That way, the saving’s done from the get-go. Keeping your savings separate from your everyday transaction account means you’re less likely to spend it on everyday purchases. And with a savings account that rewards you for putting money away, you could be earning some interest as well.
- Swap your credit card for a debit card
It can sometimes be a bit too easy to spend money on a credit card. Even if you’re aware you have to pay it off that month, it seems easier to swipe away with a credit card than it does with a debit card. If you can, use that fact to your advantage and use a debit card instead. You might find yourself thinking twice before spending. After all, a debit card is linked to your everyday bank account, so your spending money is limited to your available balance. You also get to dodge the interest charges that come with a credit card, and you could avoid an annual fee altogether.
Source – Bankwest as featured in REIWA News 29 March 2019.
Photo: www.PropertyTwins.com.au
