Simple Tips to Save Quicker for Your New Home!
If your aspiration is to get closer to the dream of owning your own home, then we have got some tips for you to help you make that dream a reality!
Try and reduce your rental payments
Put your creative thinking cap on and find ways to reduce the amount you are currently spending on rent. It could be downsizing from a three-bedroom to a two-bedroom home, or possibly finding a roommate to share the rent with. Even better, consider house-sitting and live rent-free altogether! These options, though possibly less comfortable, are a great short-term solution to really increase the amount you are able to save on a weekly basis, and every dollar you save in rent takes you one step closer to your dream home!
Open a separate savings account
Talking about saving… now is a fantastic time to set up a dedicated savings account for your home purchase! Some banks are even offering 3% interest on funds lying in their saver accounts. Setting up a separate account just for a house deposit is a perfect motivator, and allows you to watch your money grow. When opening up your account, shop around for the best interest rates and where possible, select an account with no/low fees. Once your account has been opened, have your agreed savings amount direct-debited weekly, fortnightly or monthly. This will help take away any temptation to spend your savings AND will be considered very favourably by the bank when it comes time to apply for your home loan in the future.
Cut down on luxury expenses
Do you really need your daily morning coffees from your favourite cafe? Could you save an extra $50 a week by packing lunch instead of buying it out each day? Is that extra movie channel on Foxtel really a necessity? What you may think of as little expenses all add up. Cutting down on expenses will help grow your savings account quicker.
Be aware of your energy usage around the house
Simple things like turning off the lights when you leave the room, using energy efficient light bulbs, and turning appliances off rather just leaving them on standby, can help reduce your energy bills and make a huge difference across the year.