Saving a deposit can be challenging for many first home buyers, particularly with Perth’s high cost of living. Here we share some money saving tips to help you reach your savings goals and get into your own home sooner.
Develop a savings plan and set your goals
Start by identifying the amount of deposit you will need to save. Most banks require a minimum contribution of 5-10% of the purchase price. So for example if you are planning to purchase a property for around $450,000, you will need to contribute at least $22,500. Saving a large amount of money can feel overwhelming, so try to establish smaller, achievable savings goals along the way to keep yourself on track to reaching your goal.
Create a budget – and stick to it!
Creating a personal budget is a must! Record and keep track of your everyday expenses such as groceries, rent, bills and entertainment etc. Be honest about what you are currently spending and identify any areas where you could cut back and save.
Open a high interest savings account
Now that you’ve got your budget in place, it’s time to set up an automatic savings plan. Make the most of your money by opening a high interest savings account. Keep this account completely separate from your everyday banking to avoid the temptation of dipping into your savings for impulse buys.
Pay off and close your credit cards
If you have one or more credit cards, consider paying off and closing these to avoid spending money that you don’t have. If closing your credit card is too drastic, consider lowering the limit and keep it for emergencies only.
Want to know more about buying your first home? Contact your local Perth mortgage brokers today on 9277 9888, or click on the Contact Us button at the top of this page.