At McGrath, we love seeing people move into their first home and helping them to get in there.
The joy on their faces as proud new homeowners eagerly grab the keys and open the door for the first time is just priceless for us and is a big part of our “why” we do what we do, day in and day out.
Over the years, we’ve gained a lot of experience in helping people with the challenges of getting set up to make sure they can get the first home they desire.
So, for a little helping hand we’ve got a few hints and tips to save that oh-so-important deposit for your first home.
Smash your own avocados
We all love to head out for breakfast or brunch on the weekend after a long week at work and to kick up our heels and soak up some sun with our loved ones and friends, but for those saving the deposit for their first home, there is another way.
It’s easy to whittle away those extra dollars when you eat out at restaurants, and we know how tempting it is to do it with so many options by the coast.
But you’ll be amazed at how much money you can save if you spend some time cooking a delicious breakfast of your own at home instead.
Think of the above as an analogy for all your spending decisions. Even if it’s just one less breakfast or coffee out a month, this cost can be added to the piggy bank.
Start a high-interest savings account or term deposit
If you don’t already have a high-interest bank account for savings separate to your spending accounts, we recommend you set this up for yourself as soon as possible.
Then you have a spot to transfer some cash out of your pay cheque each week which is away from your spending account. If you’re already a good saver, another great strategy is to transfer blocks of money into term deposits while you build up your home deposit.
Then that money is locked away for a fixed term, and the best thing is it will pay you just about the best risk-free interest rate you will find, so not only do you save your money, but it will accumulate interest while you sleep (and while you’re awake).
Budget to control discretionary spending
And of course, one of the best methods of saving is to set up your very own budget. Now we know the word ‘budget’ can send shivers down the spine of many ‘excitable spenders’, but it need not be a dirty word.
Think of a budget as simply working out how much money you can afford to spend on discretionary things after you’ve paid your bills and set aside enough money each week for your house deposit.
Budgeting is just a plan of how to get where you want to be, expressed as numbers and time.
Whichever way you look at it, saving that deposit for your first home is a must-do if you want to experience the same joy and independence as all the other homeowners.
It’s not always easy and you will have to make a few sacrifices, but the best things in life always take work, and once you start saving some money, you’ll be amazed at just how quickly you get to live the home-owner dream too.