5 ways to save for a house deposit

December 6, 2020

How to budget like a pro

Saving for a house deposit can feel impossible.

Especially when you’re always hunting for hidden notes or coins in the final days before payday. And, when you’re haunted by your extensive credit card debt.

To help you out, we’ve compiled a list of 5 ways to save for a house deposit. You’ll feel like a budget pro in no time!

1. Review your current spending habits

The first step is to assess your financial situation.

  • Where are you spending your money?
  • Are there any areas where you could cut back?
  • How much are you putting aside in savings?

Try using a diary, excel spreadsheet, or budgeting app to record every transaction you make for a month or two. It might be painful, but it’ll provide a good overview of your spending habits. Both good and bad.

2. Know how much spending money you *actually* have

You probably have a rough idea of how much you need for a house deposit. But do you know how you’re going to get there?

Consider your ideal time frame and work backwards. For example, if you’d like to buy a place within 12 months, think about how much you could realistically save on a monthly basis from next month onwards. Remember to incorporate your usual expenses like petrol, rent and groceries in the equation.

Have you come up with a figure? Great!

Next time you’re paid, immediately transfer this amount to a savings account you’re not allowed to touch. You can also arrange for this transfer to occur automatically.

After expenses are paid, you can spend the disposable income you have leftover.

Need more help with this? You might like to check out the Profit First method.

3. Make adjustments to your expenses

If you feel like your expenses are gobbling up all your spending money, see if you can make any adjustments.

For example:

  • Are you really using that gym membership?
  • Are you on the best mobile phone plan for your needs?
  • Is there anything you can cut out from your typical grocery shop?

You’ll probably find some extra cash and savings in there somewhere!

4. Choose cash over credit card

The problem with credit cards is they make us feel somewhat invisible. In reality, money doesn’t grow on trees (yet). It’s only borrowed money.

If you’re going to use a credit card, be 100% sure you can pay it off within the month. But if you’ve acquired a fair bit of debt that can’t be paid off in the next few months, you might want to cut up your credit cards for the time being.

You’re better off using cash when out and about. Then once it’s gone, it’s gone. It’s impossible to overspend on groceries or coffees for the week when your wallet is empty.

5. Review your budget regularly

After you’ve developed new spending habits, we recommend checking back on your budget every few months to see how you’re tracking.

Have your expenses gone up or down? Have you received a pay increase? You may need to adjust your house deposit amount accordingly.

While budgeting isn’t always easy, just keep the end goal in mind - a beautiful home to call your own. The good news is, all these new habits you’ve developed will help you afford monthly mortgage repayments!

When you’ve saved that deposit and ready to find your dream home, register with Listing Loop. Our platform gives you the opportunity to find ‘secret’ off-market properties for sale matching your exact criteria. You’ll be notified in real time whenever a suitable place pops up!


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