First Home Saver Accounts – the new Government initiative to help you save
To help first home buyers on to the property ladder, the Government is set to launch its brand new First Home Saver Accounts scheme on 1 October 2008. By opening a FHSA account, you can boost your savings through tax concessions and Government contributions. This savings initiative promises to deliver higher returns than conventional savings accounts.
Saving up for the deposit to buy a first home is becoming increasingly challenging and is not helped by the fact that Australia is now one of the least affordable housing markets in the world. First time buyers are faced with sky rocketing rents, interest rate rises and the increasing costs of day-to-day living, all of which make putting aside money each month extremely tough.
By following a few other simple steps, you can help cut the length of time it will take you to save up that deposit and achieve your goal of becoming a first home owner.
Mortgage Choice recommends the following tips to help you save those dollars
Keep your savings out of harms way. Set up a regular automatic transfer into a separate savings account to remove any temptation to spend it.
Stop needlessly spending money. Keep a diary of all the little things you buy each day (e.g. a latte, a bottle of water) to bring home how these costs can add up and eat into your budget. Use the Mortgage Choice Spendtracker to help you stick to your budget.
Only spend what you can afford. Leave your credit cards at home, only pay by debit or cash and only visit the ATM once a week.
Appreciate the true value of money. Each time you want to buy something, consider how many hours you would have to work to pay for it. For example, it would take someone on a salary of $50,000 nearly eight days to earn the money to buy a $1,300 flat screen television.
Shop smart. Plan your meals for the week on Sunday so you only buy exactly what you need, buy in bulk and switch to supermarket own brands where the quality matters less (e.g. flour, sugar).