May 06, 2013
Are you starting out or struggling to save money for your first home or investment property purchase? With Mother's Day around the corner, Mortgage Choice offers some of mum's tried and tested savings tips.
Saving a deposit for a property often poses a significant challenge for potential buyers, who are typically juggling the goal with the cost of living and maintaining an enjoyable lifestyle. However, establishing good savings habits can be as simple as taking a back to the basics approach.
Mortgage Choice spokesperson, Belinda Williamson explains, “When it comes to saving money, first time buyers should be looking at tried and tested methods that can help them get ahead without having to make extreme changes to their current way of life.”
“Try asking your mum for some pointers, as she was probably in your exact same position once upon a time, and might have a few good ideas for you to take on board.
“We suggest that you knuckle down and work out a detailed budget to help remove any unnecessary spending. Remember to be realistic when setting your savings target and allow for the odd treat now and again. Those little rewards could be exactly what you need to keep motivated.
“It might sound simple, but the golden rule of saving is to spend less than you earn. By putting together a comprehensive savings plan, and sticking to it, you will be sure to do just this and ultimately will achieve your savings goal.”
Taking a few tips from mum, Mortgage Choice offers the following ideas to help increase your savings and be closer to owning your first home or investment property.
Become a VIP member – Follow in your mum's footsteps and sign up to be a VIP member at your regular shopping spots. Whether this means you will get a few dollars off per ticket on a trip to the cinema, receive sale prices at your favourite clothing stores, or earn a supermarket discount voucher for collecting points.
Savings landlord – Ask your parents to oversee your savings plan. If you are living at home, you could pay more money towards your board and have them deposit the extra contribution into a separate savings account for you. Or, if you are living out of home, consider asking your parents to check in with you regularly to help keep you on track to reaching your savings goal.
Home cooked meals – Rather than buying your lunch each weekday, why not prepare your own meals by making a weekly trip to the supermarket. A savings tip is to write a shopping list (like your mum probably does) and always make sure you go to the supermarket with a full tummy – if you are hungry to begin with, you may buy more food than you need.
Waste not, want not – Eliminate some of the little luxuries that you can do without. Try cutting back on takeaway coffees, fashionable items that have a short life-span, pay-television, internet or data usage etc. You could even change your social plans and invite friends and family to get-togethers at your place rather than going out where you will be tempted to spend more money.
Do it yourself – Instead of regularly paying somebody else to clean your clothes, wash your car, style your hair etc., try taking time out to do these things yourself and save money in the process. After all, every cent counts in your savings plan!
For further information or to arrange an interview, please contact:
Mortgage Choice Corporate Affairs
(02) 8907 0472 / 0407 416 124
(02) 9018 8603 / 0412 550 004
This article is for general information purposes only. It has been prepared without considering your objectives, financial situation or needs. You should, before acting on the advice, consider its appropriateness to your circumstances.