5 Quick Tips to Save Your First Home Deposit

Saving for that first house deposit can sometimes feel like a lengthy ordeal but with a little discipline and a well-executed strategy, you can shave months off the time it takes to save your nest egg. Here are some tips to get you started and move you along to owning that dream home record time!

Save 10% of your salary - and most importantly, have it set up to be taken straight out of your pay packet and into a separate account which you do NOT have a debit card for. This makes the money hard to access and you are less likely to dip into it towards the end of each month when your balance is ebbing rather than flowing. Save first, spend later, that’s the motto here folks.

Downgrade your car - Most couples own two cars or at the very least, one relatively expensive car which could easily become a large portion of your deposit. A car depreciates in value and a much cheaper one will still get you from A to B. Cars also cost a lot to maintain so condensing to one car can save the cost of the car itself not to mention the expense to keep it on the road including registration, parking, petrol and maintenance.

SELL, SELL, SELL! - Yes we do live in a material world and have the tendency to BUY BUY BUY, and generally things we don’t necessarily need. Do you really need two TV’s or Xbox’s? Do you really need to update your wardrobe every 3 months? Possibly not. eBay is a fabulous place to sell unused or unwanted items and can possibly generate thousands of dollars within weeks if you take the time to upload decent photos of the items and write a detailed description.

Eradicate the Extravagance - I’m sure as much as we love Foxtel, do we really need it? Are we going to die of withdrawal symptoms? It’s unlikely. Make a list of all those luxuries you can live without and start to cancel their subscriptions or remove them from your routine. These could include Pay TV, buying lunch every day, replacing your morning coffee with a herbal tea you bought from home (you will survive!), hitting the bars every weekend, buying fruit and veg at the markets or renting a DVD rather than heading to the movies. With a little effort and discipline you will find these luxuries easy to remove and enjoy watching your savings mount up in the process.

Create a Second Income - Cutting expenses is not the only way to save. You can also increase the amount you earn to speed the process along. A second income could take the form of a part-time job, a monetised blog, a small business on the side or becoming a freelancer through online platforms such as Elance or Freelancer. You could quite easily live on your primary income, as you’ve been doing it already, and save all the money made from your secondary income. In this area you are only limited by your imagination and determination.

To spur on this savings spree, perhaps find an example of your dream home and pin it somewhere you will see it regularly. Like the back of the toilet door. When the going gets tough, simply remember your big goal, put your head down and march purposefully past your regular coffee spot! You can do it!