5 Tips to Reach Your Savings Goals Faster
Let’s be honest, saving for your home requires sacrifice. Whether you’re buying a home to live in or an investment property, you will be looking over your expenses and starting to critically think about where your money is going and what can be redirected to your savings account. Lets be honest, it kind of sucks as it dawns on you that going out for sushi every night might not be the best use of your funds.. So how do we reach our savings goals quicker?
1. Track your spending
This is a very important step when you are saving for your
house deposit. Tracking your spending is vital to achieving your savings goal.
It’s important to understand exactly what you’re spending your hard-earned
money on (even though you might not like what you see). Some helpful hints:
write all of them down and challenge yourself.
2. Reduce other debt
Car loans, credit cards and other personal loans, you get the picture right… These are all expenses that are dragging money in a different direction to where you want it to go. So, prioritise these one by one and pay them off. Don’t get overwhelmed by it. You eat a n elephant one bite at a time. Once you finish one, focus on the next. Ultimately, you will be able to repurpose these payments into your savings to give it a turbo boost. This is known as the ‘Snowball Method’.
3. Pay yourself first
Now this is my favourite one. Pay yourself first! One of the best pieces of advice out there. When you receive your income, you stand at the front of the line with your hand out. This is narrowing down on your mindset. You and your goals are important, so why wouldn’t you be paid first. Pay a portion of your wage into your savings account and live off the remaining. If you are in a relationship, try living off one wage and saving the other.
4. Reward yourself
Saving for a home deposit will take time. It might feel like you are climbing Mount Everest. Rather than looking at the summit, just take it a step at a time. Set yourself small weekly or monthly targets.
When you reach those goals by making small sacrifices, celebrate those wins. Enjoy a meal at your favourite restaurant or book a night away somewhere you love. I’ve seen many people try to have go onto the strictest of budgets with no ‘fun’ during the journey and fail time after time.
5. Make the most of Government assistance
Free money.. we all want it. The state government and ADF have a few of these up their sleeve. If you’re a first home buyer, you might be eligible for the First Home Owner Grant (FHOG). This is an initiative by the Australian Government to support first home buyers when buying or building a brand-new house. This can also be used as your deposit – not bad at all.
If you’re an ADF Member or Veteran, you may also be eligible for several entitlements. DHOAS & HPAS are your heavy hitters in this department. It’s vital that you know not only how to utilise these, but also WHEN is the optimum time for your individual circumstances.