If you dream of owning your own home but feel daunted by the huge financial investment this represents, you’re not alone. 

Saving for a house deposit or saving in general can seem almost impossible, especially amidst the ever-increasing costs of living and rapidly rising house prices. 

The good news is that no matter your financial situation, it is possible to start saving by implementing a few simple saving strategies. 

Even the smallest steps, if started today, can go a long way towards helping you achieve your goal of buying your own home. 

In this guide, we’ll cover the steps you should follow to kick-start your savings and set up healthy financial habits. 

Let’s dive right in. 

 

Define Your Goal

Before making any changes or deciding on a savings strategy, we recommend sitting down and setting a clear goal or goals to work towards. 

For buying a home, this may look like deciding on the type of property you desire, the location you hope to live in and how much you are willing to spend. 

You can work back from this, using the estimated deposit you will need to save and your hoped-for timeline, to find a weekly amount you would like to save. 

It can be helpful to set smaller savings goals en route to your main goal too as this keeps you motivated and encourages you to keep going. 

For instance, breaking the savings goal down into smaller amounts and giving each its own deadline. 

Always celebrate reaching each milestone no matter how small, you deserve to acknowledge your hard work and this helps you sustain momentum in your savings goals. 

Be Realistic 

Part of successful goal setting is to ensure your goals are realistic. What this means is that you set goals that are genuinely achievable based on your situation.  

If you have no savings and desire a $2 million dollar house on an average salary within 6 months, you’re likely setting yourself up for disappointment. 

Make sure you are working towards something you can actually achieve within a reasonable timeframe, this will help you remain motivated and on track.

9 Savings Strategies To Help You Get Ahead 

1. Create A Budget 

Successfully saving is reliant on the creation of an honest and comprehensive budget. 

You need to calculate your expenses and compare this to your income to determine what you can realistically afford to save each week. 

By writing down your expenses such as groceries, utilities, rent, loan repayments, transport costs and more, you can more easily identify areas where you may be able to cut back too. 

Be sure to give yourself a little wiggle room to account for things like gifts, takeaway or dinners out, clothing, make-up or similar. If your budget is too restrictive, it will be much harder to stick with. 

2. Open A Dedicated Savings Account 

Placing your savings in a separate account helps to avoid accidental overspending on non-essential items. 

High-yield savings accounts reward you with higher interest on your balance for regular deposits and can help boost your balance more quickly bringing you closer to your savings goal.

3. Automate Your Savings 

Most banks and financial institutions will offer automated transfer features. This allows you to set up recurring transfers from your everyday account to your savings account.

Taking this step ensures you save consistently and are less likely to miss a payment or accidentally spend those funds. 

We guarantee that once this is set up, you’ll become used to it in no time and see it just like any other bill payment, except this time, you’re paying yourself! 

4. Cut Unnecessary Expenses & Shop Around

Taking a hard look at how you spend can help you identify areas in which you can cut back.

Do you really need five different streaming services? Is takeaway multiple times a week costing a fortune? Maybe you’ve received yet another price increase notice on your car insurance. 

Opting to cook at home more often, pack lunch to work, reduce your online subscriptions and shop around with your utility or insurance providers can make a big difference in your available funds. 

5. Maximise Employer Benefits 

Depending on where you work, there may be some employee benefits available that can also help you to save. 

Some employers offer things such as:

• Membership savings for certain gyms
• Discounts with partnered health funds or money towards their fees annually
• Financial assistance with further education
• Flexible work arrangements for lowered transport costs
• Employee discount programs or cashback offers with certain retailers

6. Cut Back On Credit 

If you regularly use your credit card, this can easily derail your savings plans. Wherever possible, keep your credit card only for emergencies or planned expenses. 

For the latter, you should immediately pay it off with the assigned funds in your budget or the balance can quickly climb. This also ensures you avoid paying interest on purchases. 

Lowering your credit balance or opting to use a debit MasterCard or Visa card instead is ideal and can help you avoid accruing debt. 

7. Consider A Side Hustle 

While not an option for everyone, taking on a side hustle can help to boost your income and may have you reach your goals more quickly. 

This could look like signing up with a food delivery service in the evenings, selling unwanted items at car boot sales and/or via web-based marketplaces or doing freelance work online. 

Just be mindful of any tax implications or conflicts of interest that could potentially cause challenges if not addressed first. 

8. Investigate Government Grants 

In Australia, there are funding options/relief available to first-home buyers or those who opt to build over buy so long as certain criteria are met. 

From cash grants towards building and buying costs to reduced stamp duty, it is worth investigating the options available to you.

These grants may mean you need to save less than expected and can begin looking to buy or build much sooner than expected. 

9. Monitor & Adjust As Needed 

It is important to regularly review and adjust your budget and savings plan to account for changes in your finances or circumstances. 

Flexibility and a willingness to adjust your goals as needed are key to remaining on track and optimising your savings. 

Unfortunately, life can be unpredictable, but it is important not to let a sudden unexpected event, such as needing major car repairs, derail your goals. 

Accept what needs to be addressed, then as soon as you can, return to your savings plan, accounting for any changes, and keep going.

Do I Have To Have Savings To Buy A House? 

Yes and no. There are some avenues through which individuals may be able to enter the property market with little to no savings. 

Typically this would be through a guarantor loan whereby a parent or sibling uses the equity in their home to act as security for your home loan. While this may be an option for some, it is not without its downsides. 

Should you be unable to repay your loan, this places the guarantor in a difficult position that could see them made responsible for your debt. 

Additionally, even if you have a willing guarantor, you will still need to demonstrate healthy financial habits to gain loan approval. 

Things such as your credit card balances and limits, personal loans, student debts and credit history will all be taken into account, not only your savings or ability to provide a deposit. 

What If I Am Unable To Save Much? 

While saving more is always preferable, not everyone’s situation will allow them to put aside large amounts each pay cycle. 

Even a small, nominal sum will build up over time and help to establish healthy financial habits. 

Having savings, whether for a home or not, is essential, so don’t be discouraged by how much you can save. Ultimately, the most important thing is that you start. 

 

How Stop Renting Perth Can Help 

At Stop Renting Perth, we understand how challenging it can be to get ahead financially and escape the cycle of renting. 

We’ve been where you are and are passionate about supporting everyday Australians to enter the property market sooner than they believed possible. 

Through our proven strategies, we give you a roadmap to success, able to either get you started on your dream build or support you to work towards this in record time. 

We look beyond whether you have significant savings or a deposit. Instead, we review your unique circumstances and investigate available government grants to determine your suitability for one of our house and land packages. 

With our support and guidance, you can enjoy living in a brand-new home, built to the highest standards and in an area of your choosing. With over 50 home designs to select from and land available in locations all over Perth, we make it easier for you to be in your dream home sooner. 

Book your obligation-free consultation with one of our expert team members today at 0402 513 446.