Saving for a house deposit seems to be so increasingly difficult, that's what you’ve been thinking, isn't it? So, here's the deal, this doesn't have to hurt. You don't have to go without a TV or eat beans and rice for every meal to save enough money for your first home. Instead, start following the five simple tips.Incorporate them into your spending habits every month and see how the dollars quickly add up. Who knows.......You could end up saving hundreds or even thousands of extra dollars per month! Or maybe I'm just over confident that my tips would definitely work, hehe. Let's find out.
What do you do in the situation when everyone else has steaks and lobster, and you have ordered a dinner roll? It can be frustrating when you are out for dinner and the other guests want to split the bill equally.
If you are not in a place where you can or want to spend money, learn to say so with confidence. Instead, invite your friends over to your home, cook something together, or ask them to pitch in and bring a dish and kick back to watch Netflix. Reduce going to cafes unless you really need to. Remember this, “Keeping Up With the Joneses” is an expensive and unnecessary pursuit. Don’t fall prey to the feeling that you have to spend money in order to impress other people.
So, figure out which habits of yours are draining your budget, and evaluate whether keeping them up is really necessary. You might realise that by following just this simple rule, you can save at least $100-$200 a month!
Heard of this phrase, one man's trash is another man's treasure? This simply means cleaning out your closet and turning the unused stuff into cash. Let’s say you no longer work from home , do you still need a study table/chair? If not, sell it! Or, you have already replaced your old phone/laptop with a new one, then sell the old ones! If any clothes are lying around that you don't wear anymore for whatever reasons, again sell. Sell, sell, and sell anything (furniture, old TV, fridge, etc) that you come across as unwanted/unnecessary because it will be useful for someone, plus you are making money. On top of all this, you will feel good to simply have all of that unused stuff gone from your life. Plus, you’re saving stuff from landfill, so give yourself a pat on the back for helping the planet while you help grow your bank balance.
So, here are some methods of selling you could use:
Even if you follow one or two of these tips, you can potentially make a $200-$1000 quarterly, which equates to $600-$3,000 per year.
One of the fastest ways to earn money is to leverage the skills and resources that you already have at the moment. For example:
Even if you follow one or two of these tips, you can potentially make a $60-$100 weekly, which equates to $2,880-$4,800 per year.
It might seem obvious, but reducing your living expenses is a great way to save cash. If you’re currently paying $500 per week rent, then consider moving to somewhere you can pay less, say $400/week. If moving isn’t an option, you could always consider asking your landlord for a rent reduction. If you are able to tweak your rental costs to save an extra $100/week that results in extra $5k towards your deposit in just one year.
Another thing you could do is if you have a spare bedroom(s), then you could make some extra bucks by renting it out. In Australia, a room can be rented anywhere from $50-$200 per week, especially the ones closer to the city, and if you’re located in the city, you can easily save $100-250 per week. Even if you don't have a spare bedroom, but you have a spacious master bedroom, and you are comfortable living with someone, say a friend/family member, boyfriend/girlfriend, or just a random stranger, then you can still save a few 100’s in this way. That's easy $2,600-$10,400 extra per year that you could be putting towards your deposit.
Otherwise, if you live in a busy neighbourhood and in a house, you can rent out your garage for $25-$70/week as well. That's easy $1,200-$3,360 that you could be adding to your savings. What if you could rent out a room and a garage at the same time? Alternatively, you could rent out parking at your property (if it’s in high demand in your area) and charge a monthly fee for someone to use your parking space. That would be your rainy money day moment!
Even if you follow one or two of these tips, you could potentially save $50-200 a week, which equates to $2,400-$9,600 per year.
Here are what you can do:
- Gym/yoga/jogging at your local park
- Workouts at home
- Following Youtube workouts rather than forking out for a PT
Even if you follow one or two of these tips, you can potentially save$30-$55 a week, which equates to $1,440-$2,640 per year.
With all the potential savings you make from following the above tips, you could save for a deposit somewhere between $5000-$15,000 a year, you can then increase or even double it using compound interest applications. Find out how you can do it by reading our blog post here.
I’m going to explain the reasons by dividing it into four main categories:
Disclaimer: The author is not a financial advisor and the information provided is general in nature and was prepared for information purposes only. This article should not be considered to constitute financial advice. Accordingly, reliance should not be placed on this article as the basis for making an investment, financial or other decision. This information does not take into account your investment objectives, particular needs or financial situation.