Budget Hacks to Help you Save for a House Deposit in 2019
2019 is shaping up to be a great year for first home buyers. Property prices are falling, and interest rates remain relatively low. There’s never been a better time to get into the property market, but there’s one thing you need before you can jump in – the deposit.
A home loan deposit is the first step for home buyers and saving that sum of money doesn’t happen overnight. If you’re hoping to enter the property market sooner rather than later and take advantage of favourable conditions, then this is the year to make it happen. We’ve put together some simple budget hacks to help you save for a house deposit in 2019.
Read a personal finance book
Learning about your finances is the best way to manage them. Borrowing a personal finance book from the library costs you nothing and you have a lot to gain. These books can help you to budget and offer clever tips and tricks on saving money in all areas of your life.
Coffee, lunch and dinner
Eating out, whether it’s coffee, lunch or dinner, all adds up. If these are things you enjoy, you don’t necessarily have to cut them out altogether. Even reducing the number of coffees you have out or bringing lunch from home a couple of days a week can make a big difference.
When eating out, look for the best value meals and opt to drink water which will dramatically cut your bill. Take advantage of special restaurant deals offered by sites like Scoopon, Groupon and The Fork. You can then skip the dessert menu and grab an ice cream from the service station on the way home!
When catching up with friends it is easy to suggest eating out at a restaurant but organising a potluck dinner or beach BBQ are budget-friendly alternatives.
Revise your fitness routine
Australians spend a lot of money on gym memberships and other fitness activities. You may want to consider other ways you can stay fit and motivated. There are a range of fitness apps and YouTube videos that are free or inexpensive, while you may also try and negotiate a better rate with your gym.
Don’t make online purchases immediately
Spending money has never been easier with online shopping. Set yourself a waiting period before you buy online. For example, you might consider waiting up to 48 hours before you make a purchase. This will help you avoid unnecessary purchases made on a whim.
Cut your grocery bill
There are lots of savings to be made in the grocery department. Reduce your grocery spending by carefully planning your meals and shopping list accordingly. Simple tips include: shop on a full stomach, buy items with long expiry dates so you don’t waste food, shop in-season produce, buy bulk items and consider a few meat-free meals.
Streamline your entertainment
With so many streaming services available including Netflix, Stan, Apple Music and Spotify, to name a few, it can be easy to sign up to everything and end up paying copious amounts of money each month. Consider how you can streamline these services with family members and or get together with friends for ‘viewing parties’ so you don’t all have to sign up to every streaming service on the market.
Reduce your bills
Turn the lights off, have shorter showers, avoid the dryer or put on a jumper. We’ve heard it all before but being conscious of these things can help you reduce your electricity, gas and water bills. Washing your clothes in cold water and lowering the temperature on your hot water heater are lesser-known hacks than can help you save.
Smart clothing buys
Many of us rarely need new clothes, and as such new purchases are often a ‘want’. If you’re saving for a deposit and fashion is still important to you, it may be a good idea to buy clothes at the end of the season when they are on sale. It’s recommended when on a budget, to buy clothing items that are versatile and go with other items you already have in your wardrobe.
This calculator is a great way to determine how much you spend weekly now, and what you can try and cut down on. It can be surprising to see how much you can save by making a few lifestyle changes!
There are so many ways to reduce your spending and help you save for a deposit. It’s a matter of finding which hacks work for you and what will help you achieve your financial goals.
At Mortgage House, we are no stranger to the homeowner’s journey. It’s a long (but rewarding) one. To find out how much you’ll need for a deposit, you can use our How Much Can I Borrow Calculator. Once you have your deposit saved, you can easily Apply Online in just 15 minutes for pre-approval on a home loan!