When you are looking at taking on your first home loan, one of the primary barriers you will have to overcome is achieving the capital required to put down a deposit. It can take a lot of saving, and some people find it extremely difficult to stick to their goals. Ultimately, however, if you want to own your own home or even take on another investment, you have to be able to save.

However, some people may be crying out that it is easier said than done! So, just what does a confident saver look like, and what do they do?

Do you have a solid savings plan?Do you have a solid savings plan?

 

The problem of self-perception
The first thing that you’ll have to realise is that while many people think of themselves as good with saving, few are actually capable of making good on their goals. For example, the Australian Securities and Investments Commission (ASIC) found that nine in ten of us have the ability to budget, but only 62 per cent actually save regularly, while another 48 per cent said they do not budget for every day purchases.

Clearly, there is a certain disparity between how good people think their saving strategies are, and their actual behaviour. So what does a confident saver actually look like?

 

Are you a solid saver, ready to get onto the property market with a good deposit?

 

Knowledge, planning and review
Do you think you are a victim of over-confidence? Are you a solid saver, ready to get onto the property market with a good deposit? ASIC states that confident savers, who are more likely to meet their goals, tend to have very specific behaviours. And all of them are centred around good planning.

You’ve got to know how much you need. Wise property buyers save a 20 per cent deposit for their first home, and more if it is an investment – do you know what property bracket you are looking at, and how much you can borrow? You’ve also got to have a clear savings plan, within a particular time period. It’s all very well saying “I’ll save $50,000”, but is that over a few years, or decades? It makes all the difference. Reviewing is also part and parcel of confident savings, making sure that you are on track and adjusting your plan and behaviour if you aren’t.

And finally, tell your family and friends what you are doing. Feeling beholden to people you respect can be a powerful motivator for ensuring you do achieve your goals.

If you want to be a confident saver, and in turn a confident mortgage holder, make sure you get in touch with a professional mortgage broker and ensure that you know how much you need and how much you’ll repay. You can’t make a plan without hard figures, so ensure you get in touch with us today!

You can contact a Smartline Mortgage Adviser on 13 14 97 for mortgage advice. Or complete our call request form and we’ll call you!