Tips on Saving for Your New Home

hourseYou know you’re ready to buy a new home, but you don’t quite have the money saved up for the deposit. Maybe you’re nearly there, or maybe you’re just at the beginning of your saving journey – and it’s looking a little bit daunting. Don’t worry, at ACTON we’re to help you figure out the best saving plan for your circumstances so that you are closer to your dream of owning a home.

Work out a budget

We know, it sounds like a simple first step! But, it’s easy to avoid coming up with a budget. Sit down with your bank statements (and your partner’s, if relevant) and work out where your money is going each month. Is everything necessary? Is there anything you could easily cut back on? Many people tend to find that food and alcohol are the biggest spends – apart from rent and bills – in their bank statements. Discuss what you could cut back on, where you could cut costs, and write down your new budget – set it in stone! A great way to come up with a specific goal is to decide on the highest amount you would like to spend on a new home – then figure out how much you will need for a fair deposit.

Get to know your bank accounts

Do a bit of research into the current savings account you have, and consider switching to a high interest account where possible. A high interest account will accrue interest as you save – just make sure you don’t transfer out of it! Come up with a number for each week or month, and transfer that money in there; a good rule is often 10% of your paycheck. If you have credit card debt, think about paying that off first or turning it into a personal loan – interest payments are just wasted cash.

Get thrifty

Make some extra cash by selling any unwanted furniture, electronics, books, or clothes. Throw a big garage sale, pop bits and pieces on Ebay or Gumtree, or even on social media. Even if you don’t think your items are worth much, just remember that one person’s trash is another person’s treasure! If you need new clothes or furniture, think about shopping second hand. When it comes to other areas of your life, think about how you can be thrifty. Shop in bulk for food, take lunch to work instead of heading to the pub, and invite friends around for dinner rather than going out.

There are many other ways to save money – increasing work hours or getting a casual weekend job, eliminating luxuries like Foxtel or magazine subscriptions – so take a look at your personal circumstances and finances and come up with a written plan from there.

ACTON are the experts when it comes to real estate in Western Australia. As soon as you think you’re ready to take the next step into buying a home, get in touch with our friendly and professional team – we’re ready to go on this journey with you.