Did you know up to 70% of investors may have to make sacrifices in their lifestyles in order to buy property?
This isn’t surprising when you consider property prices have continued to creep up. One of the simplest ways to fast tract your way to property investment is to cut back on day to day spending. While this is never the easiest task, adjusting a few habits can significantly increase your level of savings, and property ambitions and saving goals will be met faster.
Here are five easy steps you can take
Pack your lunch
Bringing a homemade lunch or even packing leftovers to work every day can help save more money than you think. Buying your lunch costs around $15, so each week around $75 is spent on lunch. That adds up to $3,900 a year! If that was being invested to a high interest savings account, you could be over $4000 wealthier each year.
Live from a cash budget
Living from a cash budget is a great way to avoid overspending. Plan exactly how much money you need for expenses each week and withdraw that amount at the beginning of the week. Living from cash means you are less likely to charge unnecessary and impulsive costs on your credit/debit cards. Furthermore, you can avoid losing money to ATM fees by withdrawing cash from the wrong bank teller. Australians spend around $548million in avoidable fees each year!
Ask for a discount
Asking for a discount can feel like an uncomfortable task, but it is worth doing. If you’ve been at the same gym for a while, try calling the head office and ask if you can reduce your regular payment. Even receiving a discount of $5 a week adds up to $260 a year. Every penny counts when it comes to saving.
Ensure you pay your bills on time
Paying your bills on time means you will save money on late fees. This is a really easy way to save money if you are victim to late fees on your bank statement, utility bills and phone bills. If you struggle to remember when these bills are due, make a memo in your calendar and pop up reminders in your phone so that you pay every bill on time and stop falling victim to costly late payment fees
While there is nothing wrong with staying loyal to one company, sticking with the same health insurance or car insurance year in and year out can mean you are missing out on a cheaper deal. Get online and see what companies are on the market and offering potentially cheaper and better suited options.
Some other adaptations you might consider to increase your savings include:
- Change jobs to a higher salary
- Delay vehicle purchases or upgrades
- Miss out on a holiday
- Get an additional job or increase your hours/shifts
- Cut back on leisure spending i.e. eating out, clothes shopping, entertainment, TV and magazine subscriptions
- Move to cheaper accommodation
- Rent out a room in your property
- Move back in with parents to save on rent costs
To learn more about your home loan or for more information on saving for a deposit give us a call on 02 9358 4855