Saving quickly for a deposit on your first home

SAVING for the deposit on a first home can be exciting, but it can also end up being tedious and drawn-out.

You may want to speed up the process in order to save money in the long run and get into your new home quicker, says Loan Market.

This does call for some sacrifices, however drastic measures won’t be sustainable.

Before creating a budget, you’ll need to identify what they are currently spending money on.

You can use an app (such as Spending Tracker) or a simple notebook and pen to record purchases and income.

This is often an eye-opening activity and will make it easier to decide on what to cut back on.

Free budget planners online (PocketBook is a great one to use) helps users manage money and keep on top of personal finances.

If it’s unlikely you’ll be considered for a raise at work, you’ll need to think about other ways to increase income.

Do you have items you no longer use that you can sell?

Talents you can utilise, like teaching a musical instrument, tutoring or even dog walking?

Airbnb is a great option if you have a spare room you can rent out in your current home.

If you don’t use the car much, consider a peer-to-peer sharing scheme such as Car Next Door to make extra cash by renting out your vehicle.

Speaking of vehicles, most households have more than one car, but is this vital?

Selling a car will give you more money to put away, as well as saving the costs of registration and servicing.

If you are planning to buy a home with someone else, you can motivate each other to save.

Compare notes and have a friendly competition to see who can save quicker.

While saving for a deposit can be challenging, it doesn’t need to be stressful.

The money saving tips you will learn along the way will always come in handy, even when you’re sitting comfortably and content in your new home.