Budgeting tips for saving towards a home loan deposit
The road to homeownership can be long, with a lot of things to take into consideration before finally achieving your goal.
One of the main obstacles standing in many Australians' path is saving up for the initial deposit on a home loan.
If you're a first home buyer who wants to make the jump from tenant to owner, this can be especially difficult with your current rent obligations.
Saving up that initial deposit can seem like a daunting task, but it is achievable if you tighten your financial belt a little bit and put all your determination towards your long term goal.
Here are some budgeting tips to help you save up for your first home loan.
One of the oldest tricks in the book is to put aside a percentage of your pay check each week into a separate, untouchable savings account.
Saving as little as ten per cent from each payslip will help you to amass your funds after a while, and the added bonus of keeping access to them limited removes any temptation you may have to touch them during this saving period.
Eliminating a few lifestyle luxuries can also help. For example, spending money each day on coffees or lunches may not seem like much, but over time these small purchases can add up to a significant amount of money that could put a dent into your initial deposit.
Little things like putting your digital television subscription on hold for a few months or cutting out spending on going out for dinner and drinks could save your hard earned cash and put it towards a home of your own.
One solution which is outside the box is to pick up a part time job in the evenings. Things like tutoring, freelance writing, or babysitting could help to bring in some extra funds that, when put straight into your savings account, could easily fast track your saving period.
But before you know it, you'll have your deposit in hand and will be ready to tackle your first home loan and take the next step towards being a homeowner!