Top tips when saving for a home deposit

PAYING off a mortgage can take a long time, but at least it is gradual and spread over a number of years.

It is the saving for a deposit where many people really seem to struggle.

Trying to save as much as you can, as quickly as you can in the hope that you’ll get into the property market before property prices rise too much can be very hard.

Here are some tips that will help you get the deposit for your first home.

Look at your health insurance

Look at your health insurance policy in detail.

If you’re paying for extras that you never use like acupuncture or speech therapy, change your policy.

It can save you up to $50 a month, which equates to $600 a year.

Don’t get too carried away and cut back on essentials though.

Find a housemate

If you have a spare room, whether it is a rental or a place you own, it may help to put some items into storage and rent that spare bedroom.

It doesn’t have to be forever; it may only be for a year or so until you have saved for your deposit.

The extra money you receive from rental income or the money you save when splitting the rent should go straight into a savings account to eliminate the temptation to spend. If you’re renting, don’t forget to check with your landlord first so as to get their permission.

Move house

If you’re renting a fancy apartment on the best street in the best suburb, consider a minor downgrade so more rent money can go towards a deposit.

Again, this isn’t forever.

It is just to kickstart and encourage some savings that will all be worth it in the end.

Coffee, not breakfast

Breakfast is fast becoming the new dinner.

It seems that cereal or pancakes at home just won’t suffice and the $20 smashed avocado is the way to go.

If you find yourself eating out a lot, tell friends that you can go for coffee as opposed to a meal.

It is cheaper and often healthier.

Go dry for a month

It is no secret that alcohol is expensive, especially if you go out a few nights a week.

Why not aim for a sober month here and there to help curb the temptation of spending your money on craft beer and espresso martinis.

Cancel memberships

If you haven’t been to the gym in six months, perhaps it is time to cancel.

The same goes for yoga, pilates, swimming or tennis.

That money is constantly being deducted from your account while it could be going towards bigger and better things.

Adopting even a few of these tips will speed up the saving process. Good luck.