First Home Buyer Budget Basics
If you’re in the market for your first home, you’ll know that the path to achieving your dream will involve saving money. That means you might need to think about creating a budget for yourself. Saving money for a big goal like the deposit on your first home can be a challenge and it may mean some lifestyle adjustments and sacrifices. But you may also find that the discipline it takes to save will reveal determination and confidence you didn’t know you had in you. And the process will make putting a deposit on your dream home that much sweeter.
Tips and tricks to help you save for a deposit
If you aren’t sure how you’ll manage budgeting for a deposit on a first home, here’s a guide:
1. Cut spending to grow savings: Instead of saving what’s left after daily expenses, you could try giving savings a top priority. Look for areas where cutbacks can be made. It may mean moving into a share house instead of living alone, or going out less. There are plenty of online tools like savings calculators that can help you with financial management – and deciding what has to go.
2. Set a realistic savings target: It’s important to aim for an achievable goal, especially as a first home buyer trying to gain a foothold in the market. Make sure you’re shopping and attending open houses in a suburb you can afford, and not aiming for a perfect first home.
3. Divide your accounts: An idea to manage your finances can be to separate your money into different bank accounts. You could split this by keeping an everyday account for your living expenses and a separate account for your savings to go into via automatic payments. You’ll know your nest egg is growing without weekly effort to manage it – or weekly temptation to spend it.
4. Stay motivated: Having a friend or family member take on the role of money mentor can help you stay on track with your goals. This is especially true if you’re co-purchasing your first home with someone – you and your partner can motivate each other.
5. Boost your income: Have you always dreamed of putting your skills as a photographer to use, or starting an Etsy shop? Exploring options to add to your income through freelance work or putting your hand up for some overtime can be a way of reaching your savings goal sooner.
6. Be patient: House-hunting takes time. Don’t sweat it if you need to move back in with your family for a few months. Wait until you know you have enough in the bank – an extra few months of savings can make a big difference in buying a first home.
7. Focus on the future: Keeping the end goal in mind makes it easier to resist excessively indulging. It may mean having a simpler lifestyle for now, but this could be a side benefit – giving up those nights out may make you feel healthier and more focused. If buying a first home is on your list of goals this year, speak with your Aussie Broker!
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- Chapter One : Getting started
- Chapter Two : Your Dream Home
- Chapter Three : Money Matters
- Chapter Four : Ways to Purchase
- Chapter Five : Understanding Interest Rates
- Chapter Six : Understanding Home Loans
- Chapter Seven : Lending Sources
- Chapter Eight : Getting Your loan
- Chapter Nine : Choosing a Home
- Chapter Ten : Steps to Settlement