Before you even start looking to purchase your first home, it’s a good idea to have a bit of money behind you. Most home loan lenders require you to have between 10% to 20% of the deposit, but what’s the easiest way to do this when you’ve got a bunch of other bills to pay? Here are some great tips that will help you save for a home deposit.
Put yourself together a monthly budget
Creating a budget may sound boring, however, if you can see where your money is going every month, this will go a long way to helping you figure out what’s a necessity, and where you can cut back on luxuries.
Move back in with your parents
Before you screw your nose up, moving back in with parents has become the new norm for young couples trying to save for a house. Renting or sharing a house with friends can be incredibly expensive, and if you’ve done up a budget you will see exactly where your money has gone. By moving in with your folks for a while, the money you save on expensive rent can go straight into saving for your own home. If you really can’t live at home, or your parents aren’t willing to give you cheap rent, house sitting is a great way to live rent and bill free for longer periods of time.
Do some extra work
The other great thing about a budget, is it allows you to take a look at exactly how much you earn and where it goes. If your current job doesn’t leave you much in terms of extra savings, maybe it’s time to take on a second job. This second job can be cash in hand work, or work that you can do evenings or weekends. Do the maths and see how much you can save in a year by putting in a bit of extra hard work each week.
Pay off all your other debts
If you’ve already got a lot of other debt, taking out a home will put you further in the red. Use any savings you may have to pay off any outstanding debts or your credit card. Once those debts are gone, you can put any money you now make into a high interest savings account, and that money can go towards your house deposit.
Follow these great tips, and you will be able to save for a home deposit in no time at all.
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