There are many different ways that you can boost your savings, and reach that dream of purchasing your own home sooner. Here are a few simple savings tips that you could consider when saving your home loan deposit:
1. Be realistic about your goals: In order to make your savings plan work, it is important to allow for treats every now and again and to reward yourself when you hit key milestones. This will help keep your savings momentum going!
2. Save a percentage of each pay check: Try saving 10% of each pay. It might mean that you will have to stop buying your lunch each day, but it will be well worth it in the long run.
3. Eliminate a few little luxuries: Try cutting back on eating out in restaurants, or putting your subscription TV on hold temporarily. The savings you could make on these small luxuries over even just one year can be much more than you think.
4. Find a high interest savings account or term deposit: By investing your money into a high interest savings account you could be regularly earning interest on your savings. These accounts often cannot be accessed via ATM or EFTPOS, which should also help to reduce any impulse spending.
5. Pay off your debt: Free up some of your cash by paying down any outstanding debts that you already have. This way you will have more money to put towards your savings, and eventually towards your loan repayments. Plus, it will put you in a better financial position when you apply for a home loan. Keep in mind lenders will assess your ability to borrow funds based on your assets, liabilities, income and expenses.