Top 5 strategies to save for a house

The first home owner’s grant along with stamp duty exemptions may help first time buyers get started, but a deposit is still needed for you to buy a home.

To help you get started with your saving journey, here are the top five saving tips you can use so you can finally buy your first home.

1. Budget

Buying your first home requires a lot of budgeting in order to save for a deposit. It's time to write down how much you earn and how much you spend. Get a piece of paper or create a spreadsheet. You should be able to determine how much you are spending on utility bills, rent, groceries, transport, eating out etc. Looking at what you earn and what you spend will help you determine how much you can put aside and save each month.  Knowing your budget is the best saving strategy to get you started.

2. Cut some costs

Now you have your budget, it's time to cut out some costly expenses. Comparing prices and opting to buy a cheaper version can do you good in the long run. Buying clothes from the thrift stores instead of boutique shops, bringing packed lunch to work, or even not going to the cinemas are some possible money saving strategies. Cutting down on expenses wherever possible is key to saving so you can buy your first home.

3. Setup an automatic savings plan

Put a set amount of your pay into a savings account as soon as you get your salary. If money is put aside, then you can budget with the remaining money you have available. This approach allows you to save your money first, rather than at the end when little money is left over.

4. Earn extra money

Aside from saving money, earning extra cash will help you buy your first home quickly. There are plenty of ways you can earn extra, such as getting a part-time job or doing extra work such as freelancing. Perhaps you can sell items on eBay or Etsy to earn some extra cash. Think of other ways to earn extra cash that might suit your skills.

5. Settle your debts

Getting rid of your debts such as credit card debts and personal loans will help you use that extra cash to save for a house deposit. Having less debt can also help with your credit score when you are ready to apply for a home loan.

Final word

Saving money for a deposit to buy your first home may require a lot of sacrifices. But keep in mind that having a property to call ‘home’ is the most rewarding life experience. Get some advice from a lender early so you can determine how much you need to save in order to purchase your first home.