You want to save. You’ve downloaded a colourful budgeting app and you’re making sandwiches every day this week. You can practically hear your new doorbell.
But even the best savings plans can be knocked out by fatigue. Follow these tips courtesy of ME Bank for saving for a home deposit and win at growing bank balances.
- Know what you’re aiming for.
Do you know what’s hard? Saying ‘no’ to hazelnut gelato. But do you know what else is hard? Saving when you’re not sure exactly how much you need.
Shooting for a moving target means you’ll never know if you’ve succeeded. Set yourself a firm goal. A good place to start is talking to your lender – they can tell you how much you can afford to borrow and what type of deposit you need. Having a history of genuine savings besides rent will show them you’re serious. Plus, they can help you with the ins and outs of the minimum deposit for a house, like the extras you’ll need to consider if you save 5% instead of 20%.
- Simplify everything.
Yes, everything. What does your life look like? If you’re like most of us, you’re draining your bank balance with dozens of microtransactions and bubble teas. Maybe you’re splurging on $25 brunches or a few drinks with your mates. There are always gigs to check out, weekend getaways to savour and new detox diets to try.
If you’ve hit a savings slump, it could be that you’re trying to cram too much into your life. It all draws energy – and cash – away from your savings goal. Re-energise your first home deposit plans by cutting back on busy-ness and focusing only on the activities you really love. You can get rowdy again just as soon as the keys to your first home are in your hand.
- Build a support team. Consider matching t-shirts.
The best savings accounts in Australia can still vary enormously when it comes to interest earned. Check your rate. Right now. Seriously, open your banking app and check it. If you’re not earning a great rate, close the app and look for a better deal immediately. Why should you do all the hard work on your own?
Enlist the support of a bank that’s willing to do part of the heavy lifting for you. Grow your deposit in a savings account that does its fair share with a competitive interest rate .
- Cut yourself some slack and cake.
Saving is hard. It means not being able to do the things you like, and instead of doing them you actually have to worry all the time. It can feel like a pretty bad deal.
If you’ve lost your savings mojo, you might just need a breather. Relieve the pressure by going back to basics. Instead of aiming to save $100 each week, just aim for $20. Refuse to beat yourself up about it. You’re doing your best.
Stick with the new plan for a week or two. Then, ramp it up a little. Save $50 for a few weeks. When you’re feeling it, boost it to $80. Each time you push a little harder, reward yourself with something that doesn’t cost much, like a delicious treat or a fancy drink with an umbrella in it.
- Develop a personal mantra.
It might sound a bit woo-woo, but visualising your goal and reinforcing it with words can be a great motivator. Start with something simple like “Nothing will feel as good as owning my own home.” Repeat it to yourself every morning. Look in the mirror and tell yourself you can do it.
When you’re ready, include other options like “I’ll never have to clean for an inspection again” or “I can get a guinea pig and no one can stop me”.
If this all sounds like first home buyer boot camp, that’s okay. Saving for a house deposit is a real challenge and you’re already a legend for getting started.
With positive reinforcement, the right savings account and commitment, you and your furry friend will be in your own place before you know it.
Terms, conditions, fees and charges apply. Applications are subject to credit approval.
This article is prepared based on general information. It does not take into account individual financial objectives or needs and is not financial product advice. Article Source.
Related: First Home Buyer blog archive
Cairns Mortgage Broker – Jason Thomson is a Mortgage Adviser and Finance Broker based in Cairns with clients all around Australia. Client reviews featured on his website prove that Jason is a trusted industry professional, facilitating great outcomes for his clients. Using his wealth of experience in financial services, he thrives on delivering superior service. Jason is very approachable and is always looking for new clients to help in the often confusing world of finance and property. Offering a no fee service, you’ve got nothing to lose by having an obligation free chat with Jason today.