Four practical steps to saving for a house deposit
Buying a property is likely the biggest purchase you’ll make, and it can be many years in the making. By setting up a savings plan and sticking to it, you can make your dream a reality sooner.
Step 1 - Know what comes in and what goes out
Now is the time to get familiar with what you earn and what you spend. It sounds straightforward, but you might be surprised at what you find when you study the ins and outs of your bank account – perhaps that gym membership was never cancelled, or you underestimated the cost of all those Ubers. There are free mobile apps to help you with this that you can find in the Apple Store or the Google Play Store.
Step 2 - Create a budget
Some of us are naturals at budgeting, others are less so – but that’s okay, as this important skill can be learned. Question what you need to buy, as each purchase will take away from your savings, so weigh up how necessary it is and whether you’d rather have the money saved for your long-term goal. Instead of seeing whatever is left over in your account each month and then treating it as savings, allocate a specific amount to set aside. This not only means you’re less likely to spend the money you’ve categorised as your monthly savings, but it will give you a regular monetary goal to strive for (and you can always top it up even further when possible). The BankVic Savings Plan calculator is a helpful tool to work out how much you can save over time and how much interest you'll earn on a given interest rate.
Step 3 - Automate the process
By having a set amount of money automatically transferred from your day-to-day bank account to a savings account, you’re reducing the likelihood of spending it. As you can lose interest if you withdraw money from a long-term savings account, it’s less tempting to dip into this fund – you want to make it harder for yourself to use this money. Reach your savings goal faster with a BankVic Bonus Saver account by earning bonus interest.
Step 4 - Stay accountable
Whether you’re going in with a partner, family or friend to purchase a property or doing this independently, you can make yourself accountable during the saving process. You can share your savings goals and update each other as you go, having check-ins along the way to stay motivated. A financial adviser or coach can also be a great asset, and even though this service will cost money, they can help you stay on track and also advise you on budget tips you mightn’t be aware of which will save you money in the long-run.
Want to know more about saving for your first home deposit? Visit our first home buyer hub or talk to us today by calling 13 63 73 about how we can help you reach your savings goal sooner.