8 simple ways to save more money and buy your home quicker
No matter what tip, hack or strategy you use to save money for your house deposit, you can’t sidestep the fact that saving for your deposit will take a solid plan and a whole lot of discipline. However, with the right tools and insights, you can save a home deposit in the quickest time.
1. Be realistic about what you want
We all have things that we like doing with our time and money. When it comes to saving for your house deposit, it can seem like you have to cut out everything that gives you pleasure in life and sentence yourself to live just above the poverty line until you’ve reached your deposit.
Don’t do this to yourself. For one, it doesn’t work, because you’ll end up hating your budgeting process and you’ll give up. Instead, plan for and spend on the things that you most enjoy, and ruthlessly cut out everything else.
Here’s a test, if you look at an expense, and it makes you think ‘heck yes’, then keep it. If it’s anything less than a ‘heck yes’, then you should cut that item out of your budget.
2. Save first, spend later
As soon as your pay is deposited into your account, you should pay yourself first. That means putting a predetermined amount of money into a savings account. You could set up an automatic transfer so you don’t have to do anything, and your savings take care of themselves. It’s also far more effective if your savings account is hard to access. These types of accounts usually have a higher interest return, so it’s wise to speak with your lender to see what options they have available.
3. Downgrade and downsize
If both you and your partner own separate cars, it could be logistically acceptable for one of you to sell. This is an especially good idea if you both drive nice cars. Think about selling one car, or both, and downgrading to something more economical. The money could get you closer to your home deposit faster with less stress than any other tip.
4. Take in a boarder
Today, the ‘share economy’ has flourished and become the norm. If you live in a major city, you could have a lot of demand from students and singles who’d be interested in renting a room. If you have an extra room, why not let it generate an income. It could bring in an extra $200 to $300 per week, which adds up massively over time, especially if you put it straight into a high-growth account.
5. Create a side-hustle
Most people are sitting on talents and skills which they can teach someone, or use to perform a service. Think about what your skills and talents are. It could be playing the guitar, being a handyman, babysitting, graphic design…
Why not create a side-hustle that generates additional income from doing something you enjoy.
6. Get into the property market and work your way up
Sometimes we can be overly idealistic about what kind of house we want and the time-frame we want it in. We all want to get our dream house, but often, it’s better to get into the property market with a house that we can afford now, and then work our way up to the dream house.
7. Scrupulously determine out how much you need
Saving for a home can be stressful and tiring. That’s why you don’t want to wear yourself thin by overestimating how much you’ll need for your home deposit, it makes no sense to have the extra layer of stress trying to save when you could be sitting in your new home. You can accurately determine how much you’ll need for your home deposit with the Mortgage House calculator.
8. First homeowner grant
If you’re buying your first home, you’ll be eligible for the first home buyer’s grant. Check with your lender to see how much you’re eligible for, as the amount varies from state to state.
At Mortgage House, we’re no strangers to helping you become a property investor. It can be a long journey, but it’s a rewarding one. If you’re thinking of investing in property, you can contact us for information about the best options for you when it comes to home loans.