- 1 October, 2018
- Finances, Savings, Budget
1. Put your goals in writing
Setting a financial goal will make it much easier to plan and save successfully. Make a conscious effort to track your expenses so you can see where your money’s going and cut back where you can. Small sacrifices, such as taking the bus instead of a taxi, cutting back on buying coffee or bringing your lunch to work can also go a long way towards helping you save.
2. Create a budget
Buying your first home is exciting, but saving for it isn’t much fun…. but the more money you put down up front will help determine how much money you can borrow so the more you save the better.
There are many ways to save for a home that don’t require you to make major changes to your lifestyle. Here is an easy to use budgeting tool that will help you work out where your money is going so you can actively save for that home.
3. Beat the credit monster
Credit card debt, unpaid bills and personal loan repayments can be major setbacks to your saving efforts. As part of your saving strategy get these debts paid off. Start by paying off your debts that have the highest interest rate – typically your credit card. If you can’t pay it off in one lump sum, ensure that you pay more than the minimum monthly repayment. You’ll not only slash your debt, you’ll also have extra funds to channel into other debt commitments or even savings.
4. Make your savings work harder for you
Making cutbacks on your lifestyle is one thing, but putting that money to use is another. Remove the temptation to spend your savings by arranging a set amount to be taken out of your pay each month and put directly into a savings account. Shop around, and seek a high interest rate savings account to get the best returns – many banks now offer an online high interest account.
Now you have a deposit saved, the next step is to talk to a home loan specialist.