Saving for a deposit? Here's our top tips...
Whether you have been saving for some time or only now looking to start saving for a deposit, we have some tips that can help you save your deposit quickly and get you on the property ladder:
Establish a budget and stick to it
You need to track how much money is coming in, and what expenses you have going out, and really try to minimalize your spending of the disposable income left over. Spending less than you make to build your savings, so knowing what sort of budget you need to stick to really helps.
Set a target
It is important to know what sort of purchase price you are looking for and how much deposit you will require - It is a lot easier when you have a clear goal to work towards. The first home loan deposit scheme means you could have a chance to buy with just a 5% deposit, but in an ideal world, it is good to have a 20% deposit to avoid paying LMI (Lenders Mortgage Insurance)
Always put any additional income straight into savings
When you receive tax-return, work related bonuses, or any cash gifts, make sure that you put it straight to your savings; almost as if you did not receive it in the first place. These additional deposits into your savings can really make a significant difference over time.
Put your savings to work
Do your research as your money can grow much faster if you have it in the right places. Shop around for a savings account or maybe put some in a term deposit to earn a higher interest rate.
Set up an automatic payment
Set up an automatic payment to your savings account to ensure you are not tempted to spend it – ‘out of sight, out of mind’.