Saving for a deposit is an exciting first step when you decide it is finally time to buy your first property.
Sometimes the road is smooth sailing with your savings accumulating quickly and steadily. And sometimes you feel stuck and like you’re not getting anywhere no matter how hard you try. No matter whether you are feeling like things just aren’t happening fast enough, or you are doing well but want to pimp up your deposit and supersize your savings fast, here are 5 small changes you can make right now to fast track your savings and buy your home sooner.
1.) Take a look at your bank statements.
How many Uber Eats or Doordash purchases are you making each month? Now add that up over a year. Yep it adds up quickly. With the average Australian family spending up to $47 per week, savings could exceed $2,500 per year. If you are spending more than that….well that’s potentially more in your pocket if you limit your expenditure on takeaway each week.
Sorry tattoo lovers, with large tattoos costing an average of $1,500 each, now is a great time to consider that you have enough body art and put that money to better use to secure your future real estate purchase. Recent media reports cite some ink aficionados are wearing up to $10,000 worth of body art. Less tattoos = more townhouse we say! This also applies to multiple streaming services, expensive beauty routines, and hobbies.
TIP: If people want to buy you a gift – ask for vouchers you can use for indulgences without breaking your budget.
2.) Socialise on a budget
Still going for dinner, drinks on a weekly basis (or more often)? Consider how much cash gets splashed when you’re having a great time. It’s only later that you have to nurse that financial hangover with nothing to show for it. While we all need to socialise, look to doing it cheap and cheerful. Have friends over for a ‘bring a plate’ BBQ or drinks instead. Picnic in one of our amazing parks. Limit your restaurant and pub visits and watch your savings grow.
TIP: Get like minded friends together and come up with ideas for fun on the cheap. You will be surprised how many fun things you can find to do on a budget.
3.) Bank that pay rise or bonus
Salary and wages have been stagnant for some time. The shortfall in labour is seeing people move jobs and receiving decent pay rises and sign-on bonuses. Now is not the time to upscale your lifestyle. The same applies to the slated tax cuts to be introduced. Put those extra dollars into your savings too and watch your savings account rise.
TIP: With a huge shortage in labour, businesses are desperate for staff. Now is a great time to take on a second job, negotiate a pay increase or move to a better paying role. Just remember to upsize your savings account, not your lifestyle.
4.) Make your own lunch
Still buying lunch every day? A 2017 study found Aussies spend an average of $1,546 per year on lunch. That’s a modest $32 per week. If you buy lunch everyday, that figure is more likely to be around $3,600 each year. Then add in the cost of your daily coffee (or two). The average cost of a standard coffee order is currently $5 with prices tipped to rise to $7 by the end of the year. Buying two coffees a day is costing you $2,400 a year and could go as high as $3,300 if recent media reports are correct! Invest in a good mid-range coffee machine for working from home, use the office coffee machine and bring your lunch. Making these changes alone could see you bank an additional $3,946 each year, potentially more depending how often you buy your lunch.
TIP: use your frequent flyer points to purchase household appliances and save your cash.
5.) Ego and status symbols holding you back?
Give up ego purchases and status symbols. No you don’t need a flashy car or an engagement ring so big we can see it from space. The average new car loses 10 to 15% of its value when you drive it out of the dealership. By the end of the first year, another 10 to 15% will have evaporated. Cars do not hold their value and are not an investment unless they are rare, classic or vintage vehicles that have been restored and maintained over the life of the car (and that takes money!).
Buying anything other than a standard mid range vehicle is all about status and ego and those car payments could be helping to put a roof over your head or returning capital gains and rental income. The same applies to motorbikes, jet skis, expensive holidays, generous gifts and large weddings.
TIP: If you like splurging on designer gear or expensive toys try hiring a designer outfit for a one off event or buying them second hand from a designer good buy, swap, sell page. Expensive toys are your thing, look at hiring or buying second hand too so you can direct the additional money you saved straight into your home deposit account.
It may seem like giving up a lot and sacrificing some of the good times but the payoff is the long term joy and continued satisfaction that you’ll get when you secure an A Grade property. So start today! Which of these little changes can you make to get into your property sooner?
If you have saved your deposit or are very close to it and would like to learn how we can help you to buy a home or investment property without all the hard work and hassle, give us a call today at 03 8680 2377 and book yourself a Get Acquainted Call.
A Get Acquainted call will help you understand how we will save you time and money, as well as avoid the many first home buyer mistakes DIY property buyers usually make.
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