Trying to save money for your Home Deposit can seem like an impossible task.
Everyone appreciates how hard it can be to get enough deposit together to make that big step and especially when you are paying rent or board in the meantime.
One of the best ways I know to start saving comes at the End of financial year and that is because, depending on your employment you may be eligible for a pay rise.
What I would suggest, particularly if you are trying to save, is that whatever your pay rise be you have your employer pay it directly into your savings account. (If you have a home loan you can have it paid directly to that instead.)
The theory behind it is you have already ‘made ends meet’ without this extra money, so pretend it doesn’t exist (until you really need it). This will mean you can increase your savings even faster to help you get your goal of buying your first home.
Lets look at an example;
Sarah is working full time, and her Employer has just announced she will be getting a 3% pay rise as of September. Her current wage is $52 000.00 gross ($39 845.69 net) and it will now increase to $53 560.00 ($40 757.47 net)
Let’s assume Sarah gets the extra pay put into her savings account, rather than adding it to her pay check. After 12 months she will have and extra $911.78 in her account.
For Sarah that’s only $36.76 extra pay a week which she would hardly notice however over 12 months you can see it’s a lot of money.
The best part of doing this is if you can do it long term the saving grow even bigger. For example if Sarah did it the second year she would have added another $1850.45 to her savings. Over the two years, that’s $2762.23 extra towards her house deposit, without having to do much work.
If you’re thinking about getting your own home but, have no idea where to start, make sure you register today for my First Home Buyer Program. It’s aimed at people who would like to buy a home one day but honestly, have no idea where to start and how. If that’s you check it out here, First Home Buyers Program.