Saving for your new home can seem like a distant dream. But getting there is not as hard as it seems.
Here are some helpful tips on saving for that home loan deposit and getting one step closer to acquiring a new home!
Pay off your debt
Saving on interest payments means more money in your bank account! Paying off your debts makes life a whole lot easier for two reason: it will increase the how much money you can borrow, and it will free up your cash to use towards mortgage repayments. Not to mention starting your saving journey with a clean slate means you know exactly where you are in reaching your goal.
Create a budget and eliminate luxuries
From your weekly expenses to your indulgent guilty pleasures- create budgets and stick to it! Avoiding spending on non-essential items and impulse purchases can prove to save you a huge bundle at the end of every month. As the old saying goes, ‘To make money, one must first start saving money!’.
Save 10% of each pay check
The old trick of the trade! This handy hint is one that always works if you’re prepared to be strict about it. It’s simple, lock away 10% of that fortnightly salary into a separate savings account.
Another handy hint is to lock away those savings in a different bank to your normal lender, to make it harder to access the money.
It might mean you have to miss out on that delicious five-star restaurant dinner with your close friends or you may have to pack an old school peanut butter and jelly sandwich to work every day -but it will be worth it in the long run.
Consider temporarily moving back home or house-sharing
While it may not seem that appealing to move back into the family home or sharing your current home with 3-4 other tenants, it is a quick and easy way to stabilise with your finances.
Lock your savings into a high interest savings account
As the title implies, make your earnings work for you! Don’t leave it in your everyday transaction account, you will earn less interest and might even be tempted to splurge. Look into a high- interest savings account.
Contact us today at Sprint Finance, our home loan specialists are happy to provide you with premium advice, we want to see you reach your goals!