In the wake of Mothers Day, we thought it would be appropriate to use some of "Mum's Famous Words" to help you when you’re saving for your first home or investment property. It may sound funny, but the lessons you learnt as a child such as banking a small amount of your allowance for the future can actually help you get the money you need and even pay off a loan quicker.
It sounds like a simple theory, but having a comprehensive savings plan is something that many people struggle with. It would’ve sounded like a terrible idea to you as a 10 year old, but having a detailed budget and savings plan will ultimately help in achieving your overall goal. Within this budget it is important to outline how much is going to be saved on a consistent basis, but also to allow for the odd treat every now and again to praise you for your hard work. The following are just small ideas which can help you save that little bit extra and go towards a minimum 5% deposit which is required by most lenders.
- Open a separate savings account which you don't touch as it grows
- Try and minimise luxuries such as take away food and new clothes
- Do it yourself - mow the lawn or wash the car yourself instead of paying someone
- Re-use and Recycle household items
- Use vouchers from petrol stations and supermarkets to maximise savings
There is no harm in asking others, including your mum, the secrets behind their savings plan and what did and didn't work for them. If you are a first home buyer, it’s this type of information from others who have been in your position before, which can be so valuable in helping you achieve your ultimate goal.