Cost of living is continually rising which often leaves most Australians unable to contribute to their savings on a weekly basis. If you do manage to put some of your weekly pay check into your savings it can seem like a small miracle.
Luckily Green Start Property have developed a unique system to help first home buyers with little or no deposit, however, if you are still wanting to contribute some of your own savings in to your new home a well thought out approach can have your savings growing at a unexpectedly fast rate.
1: Work out your budget!
The key to saving is know what your spending. Systematically tracking your spending is very important. Estimate what you think you will spend vs how much you spend. You need to budget rationally by making a realistic plan that doesn’t compromise your lifestyle too much.
The part that most people struggle with is identifying and removing unnecessary expenses. What luxuries can you afford to give up that doesn’t compromise on your happiness. Something as simple as bring lunch to wok from home three times a week can save you up to $3120 per year.
2: Save directly from your salary
If you try and live first & save second you will find you run out of money before you even get a change to save. But if you save first you will find that you can stretch your remaining money to live until next pay cycle.
3: Rent out one of your rooms
Do you have a spare room in your house? Why not rent a room out for some additional income? A room could rent anywhere from $100-$250/week. That’s $5,200-$13,000 extra per year that you could be putting towards your savings.
4: Buy more with less
Living Off Less isn’t always the way. Perhaps you can buy more with less.
Shops like Cosco & Aldi offer items at a much cheaper price than you would normally pay at Coles & Woolworths.
Buy more with the same amount of money by shopping at discount stores and buy things when they are on special.
5: Stop spending money on things that decline in value!
That new car you bought or even the new laptop you own. Chances are the moment you turned it on it lost 25% of its value.
Limit the decline in value by purchasing items second hand of places like gumtree & eBay.
The end goal is to have items retain their value, so you can sell them if need be when it’s time to buy your own home.
Whilst having a deposit has historically been required to purchase your first home , this is no longer the case.
To find out information about our low deposit first home packages please contact us today.