Saving money can often be one of the hardest things to do – it’s like putting a chocolate bar on the corner of your work desk, but not eating it.
A survey from the Australian Securities and Investments Commission found that 41 per cent of Australians are saving a little from their pay checks, while 16 per cent are saving easily and 43 per cent aren’t saving at all. The most popular item being saved for is housing, with 48 per cent.
A sizeable deposit is crucial when you go out to find the right loan, as it will give you better flexibility and bargaining power – when it comes to home loans, YourMortgage recommends nothing lower than 20 per cent of the property price.
In light of this, here is some advice on saving for a home deposit.
Pay yourself before anyone else
Once you’ve set up a separate high-interest savings account, arrange an automatic payment that takes 10 per cent of every pay check and transfers it over. You may have to flag the daily after-work drinks for a day or two, at least until you’ve adjusted to your smaller pay day.
The beauty of it is that eventually you won’t even realise that you’re putting the money aside – until you rush off to your mortgage lender with your bank statement that shows just how generous you have been.
Bring your piggy to the bank
While it may seem cute to hoard your coins and notes in a jar (because who uses cash these days), they’re not earning you anything sitting there. Unless, of course, you’re prepared to wait centuries for the coins to be sought after by wealthy collectors.
In the meantime, however, every extra dollar you have in your savings account will earn you more interest, so try and deposit all the cash you have lying around whenever possible.
Trade in the takeaways for Tupperware
If you regularly get takeaways for dinner or eat out for lunch, you’re wasting a lot of potential savings. Have a look for recipes that will allow you to use up all the cans gathering dust in your pantry. Get creative! Cook up a feast and store the meals in containers before throwing them in the freezer.
Now a nice, cheap and hot meal for lunch or dinner will only be a short trip to the microwave away. Depending on your ingredients and cooking prowess, it will probably be good for your waistline too.