Money+Wealth

HOW TO SAVE MONEY AND BUY YOUR FIRST HOME

21 . 08 . 2020

Your Free Spirit Animal ScreenSaverS!
MONTHLY SELF-Coaching worksheets
Downloadable Recipe Cards by Jess Sepel
Now Trending:
I'm Rebecca!

Welcome to DG! We are a Coaching Hub for Women!  Over the past 7 years we've created a huge library of Articles, Guides, Coaching Resources and Courses, to help women grow & thrive in their own life.  We hope you enjoy exploring the site x

hello,

Listen to our #1 Confidence Podcast

Tune in

Explore our latest episodes of The 'C' Bomb

Written By

The Daily Guru Team

WHEN YOU THOUGHT IT WASN’T POSSIBLE…

Whether it’s a sky-high CBD studio apartment, a quaint suburban cottage (complete with obligatory white fence), a doer-upper with potential or a ranch in the rolling hills — so many people dream of owning their own piece of real-estate heaven.

Renting can feel like ‘dead money’ and so, in the right financial climate, investing your hard-earned money in a property is often seen as the more sensible, viable and profitable option.

The problem is that, even for those with a steady and sturdy income, purchasing a home can seem so darn out of reach.  This is because the more money you put down upfront, the less you’ll have to borrow from a lender and so in most cases (especially when you’re buying in an expensive area), it means scraping together a hefty mortgage deposit.

So, when the cost of living is high and your pay packet is already spread thin to cover groceries, bills and plain survival, how do you save enough money to become a homeowner in this lifetime?

 

Here are some ways you can save for a home without having to make hugely drastic changes to your lifestyle.

One

Do your research

Educate yourself and get realistic about what you can and can’t afford. Do some research and follow the property market. The market is a volatile beast — ever-changing and with plenty of ups and downs — so it’s important to be well informed when it comes time to enter. Get an understanding of the kind of home you are able to buy — the size, the price and the location.

In addition to understanding the market, it’s also wise to get clued up on all the costs (and hidden costs) of being a property owner so you can calculate not only the size of your deposit but how much the home and its mortgage will cost you long-term.

You’ll need to consider your down payment, fees and charges, insurances and of course your repayments, so shop around and speak to various banks and lenders to determine what percentage of the mortgage you’ll have to pay upfront, as well as interest rates and more.

Two

Set a budget

Once you’ve got an idea of how much money you’ll need for your home deposit, you can implement a savings plan.

It’s wise to set out a budget, which will help you to understand your income versus your expenses and empower you to manage your money wisely.

Your budgeting process should loosely go as follows:

List your essential expenses — such as rent, groceries, bills and beyond, and set a modest, yet realistic allowance for each.

Subtract your expenses from your income.

If you’re living within your means, you should at least have a little left over from each pay cycle. This balance is what you could potentially put towards your home deposit!

It’s important to review your budget on a six or 12 monthly basis. Incomes and expenses change, so it’s important to readjust your budget accordingly.

 Three

Reduce or eliminate costs

You’re not done yet. It’s time to figure out how you can increase that surplus we covered in the above point.

Have a good think about the expenses you can cut back on, or even eliminate from your budget so that you have even more money left over after each pay to put towards your house deposit savings.

Get serious about your ‘needs’ versus your ‘wants’, and commit to making a few sacrifices. Keeping that big picture goal in mind will make it easier to say no to unnecessary expenses — whether it’s your daily barista-made latte, or that second pair of boots.

Those tiny tweaks might only lead to a few extra pennies in the piggy bank each month, but they’ll eventually add up and make a big difference over a few years.  Think about it — an extra $100 saved each month could mean an additional $3600 after three years!

 

Here are a few thrifty ways you could increase your savings, little by little: 

NO1

Pay off your debts faster

Make this a priority. It’s harder to save money when you have pesky loans and credit card debts hanging over your head. Commit to paying these off as quickly as possible, to avoid crazy interest fees. You can then save the money you were using to pay off debt to boost your savings even more.

NO2Have fun for free

First and foremost, we don’t want you to live a dull existence while you’re saving for your first home loan.

You may choose to postpone any overseas holidays while you focus on your savings goals, but it doesn’t mean you can’t still be adventurous. Get creative and find ways to live large — on the cheap. Enjoy a regular ‘staycation’ in your own backyard and enjoy all the sights and attractions your home city has to offer. Hike, swim, have picnics.

Fun times do not have to cost a fortune.

NO3

Ditch unnecessary memberships

Plug those money leaks. Where are you spending money unnecessarily? Are you paying a membership to gym, when you could workout at home or in the park with a friend? Do you really need that magazine subscription?

NO4

Do it yourself

Chances are that in one way or another, you’re regularly paying for the ‘convenience’ of outsourced and ready-made services and products that you could quite possibly do yourself with just a little more effort, time and elbow grease.

Could you make your own lunch instead of buying it? Could you make your own bread instead of buying it? Could you grow some of your own food instead of shopping for it? Do you really need to purchase bottled water? Avoid those trivial expenses!

NO5

Share the cost

Have a think about the ways you could reduce the cost by sharing it with someone else.

Could you buy household items in bulk with a friend to get wholesale prices? Could you shop online for necessary items together, to share shipping fees? Can you carpool, instead of paying for public transport? Could you get a roomie and split the rent and utilities bills?

It’s a win-win situation for everyone!

 NO6

Knock ‘em down

The cost of your ongoing bills, that is. Contact all your service providers — from insurance to telecoms and try and negotiate a better deal on your account. In some cases, you’ll be able to reduce your premium or monthly bill if it means they can continue to keep you on as a customer.

NO7

Go green

What’s good for the environment, can often be good for your hip pocket and your health. Walk or ride to work, instead of driving or taking the bus. Be more energy efficient with your electricity and appliances around the home. Find a way to reduce, reuse and reycle waste.

NO8

Buy second hand

Instead of heading to the department stores for that shiny new thing you need, why not opt for a preloved version from a thrift store, Gumtree or eBay?

You see, when it comes to clothing, furniture, vehicles and beyond, you can often score a bargain without compromising on quality. For a fraction of the price and with a little love and attention, you can usually repurpose, upcycle and breath new life into anything!

NO9

Set goals

Once you have an idea of how much your home will cost, your budget is in ship shape, you have identified ways to reduce the cost of living and have a clear idea of how much money you are capable of saving each month, it’s time to set a clearly defined and manageable savings goal with a set time frame — whether it’s one, two or five years.

“I’m going to save $45,000 in three years, for my house deposit.”

Better yet, divide your big goal into smaller goals or milestones that you can reach along the way. Ticking off smaller financial goals will give you more satisfaction and momentum — and the big number at the end won’t seem like such a hard slog.

“I will save $7500 by January 2017.” 

“I will save $15,000 by July 2017.”

“I will save $22,000 by January 2018.”

And so on and so forth.

Be sure to celebrate and reward yourself when you reach those smaller savings goals. Perhaps you could treat yourself to a nice dinner at your favourite restaurant, each time.?

Again, keep your mind on the final prize — your first home will be the best reward ever.

NO10

Save, save, save

Now that you’ve done all the ground work and have set your goals, the only thing left to do is start squirreling away that hard-earned cash!

Make your money work for you while it’s sitting there and growing. Set up a high-interest savings account, completely separate from your everyday transaction account so you aren’t tempted to spend the cash.

Set up a direct debit so it goes straight from your pay into your dedicated savings account each month or you can even have your employer deposit that same amount straight in so you don’t have to touch it at all.

Many people also see the benefit of investing their savings in shares and managed funds if their savings goals are long-term. If you consider this option, be sure to do your research and evaluate the associated risks. 

Before you go, enter your email address below to receive our simple and easy to use money tracker.

Money-Tracker-Button-WP

[mc4wp_form id=”10625″]

 

Are you saving for your first home? What are some of your tips and tricks? Share with us in the comments below!

Share this:
Journal Prompts

A hugely valuable personal growth tool is the use of Journal Prompts. Bringing awareness to our most common thoughts and consciously choosing to reprioritize, refocus, and redirect these thoughts, can have the most profound impact on our life and emotional wellbeing – especially during these challenging times of late. However, at times, journalling can feel […]

50 Journal Prompts For Self-Discovery

Emotional+Wellbeing

read more

I’m not much of a fan of exercising. In fact, I quite often hate it. What I do love however, is exercising my vagina — or to be more specific — my pelvic floor muscles. Why? Because it allows me to have epic sex and incredible orgasms. Exercising your pelvic floor muscles with a simple […]

The Best Sexercise You Can Do

Emotional+Wellbeing

read more

We all experience fear and anxiety at times. It’s a completely natural and helpful human emotion that helps us respond to danger — an automatic alarm that goes off in a challenging situation where we feel threatened, pressured or stressed. We feel it when we’re about to jump on a roller coaster. When we’re gearing […]

Behaviours That Contribute To Anxiety

Emotional+Wellbeing

read more

ARE YOU IN A MAZE? Are you feeling like you’re at a stage in your life where you’re not where you thought you’d be? Maybe you’re reflecting on others thinking they seem to have it all and you’re not even close?? Or maybe you’re just feeling a little feeling lost? You might have a million things […]

Feeling lost? How to find your way out!

Emotional+Wellbeing

read more

Have you ever considered how the ways you treat yourself and others are surprisingly similar? As far back as the Bible, it has been espoused that we should treat others as we would want to be treated. But this, perhaps, looks only at the inter-relationship between people. What about the intra — the importance of […]

What our Behaviour Really Means!

Emotional+Wellbeing

read more

  CARRY ON FLOURISHING   It’s been a bit of a whirlwind adventure with our “flourish” series and we hope you’ve loved it as much as we have!   So far, we’ve covered: How to flourish at home How to boost your energy and motivation Relationship rehab How to prepare for meaningful action How to […]

IT’S TIME FOR YOU TO FLOURISH – PART SIX

Emotional+Wellbeing

read more

New Year Resolutions… We have made it to 2021! Well done. Last year was anything but easy. 2020 presented us all with challenges, abrupt change, and transitions, amongst many other things, and you made it through. As you reflect on the last year, there are things you may want to leave behind, while there may […]

Embracing Rhythms Over Resolutions

Personal Growth

read more
Design your day

“Wonderful. Productive. Smooth. Successful.” This is how we want to be able to respond when someone asks us, “How was your day?” With everything on our plate, those words often seem unrealistic.  But despite our waking hours being filled with a rush of activity that has the potential to send us into a state of […]

How To Design Your Day

Personal Growth

read more

10 years from now, where will you be? Have a clue? Not quite sure at all? That’s ok. Like a fortune-teller with her crystal ball in hand, you too can look into your future now and see the life you are manifesting. Here’s how you can quite simply predict where you will be in 10 […]

Where Will You Be 10 Years From Now?

Personal Growth

read more

  When life gets busy or you find that one area of your life is demanding a lot of your time and energy, it’s easy to find yourself out of balance and not paying enough attention to what’s most important in your life. While you need to have drive and direction, too much can create […]

Finding Balance In Our Busy Lives

Personal Growth

read more

Your head strongly insists on taking the job. Running the marathon. Leaving the relationship. But your heart… well, your vehemently disagrees. Have you been tied up in the limbo of your head and heart? Paralysed by indecision because you don’t know what’s right?     The heart whispers but when it does, the message is […]

WHAT TO DO WHEN YOUR HEAD & HEART CANNOT AGREE

Personal Growth

read more

We all get lost from time to time. We all forget who we really are when life throws a spanner (or three) into the works. Faced with choices to start and end relationships, to travel the world, to follow the hunch or to leave it, to start a family or maybe to close your business […]

HOW TO REDISCOVER THE REAL YOU

Personal Growth

read more

I'm Rebecca Sparks
Founder of The Daily Guru, Confidence & Life Transition Coach, Speaker, Podcaster, Educator, Adventurer & Goal-Getter!

My mission is to help women believe and invest in themselves and  to help them to carve out their own exciting and fortuitous path in life.

more about me

Hey there!

oh la la!

"It's like DG is reading my mind! Every time I get an email from them, its exactly what I needed to hear."
- Jennifer West

Join the gang!

We've built a HUGE library of Growth & Wellbeing Resources for women just like you.  And we save all the best bits for our PenPals
 (AKA the Newsletter crew!)

So save yourself from unbearable FOMO and sign up below 

SIGN UP

FOR OUR WEEKLY NEWSLETTER

Get Our Free Guide to Kicking Ass on Social

Taiyaki occupy farm-to-table swag fashion axe four loko. Church-key palo santo selvage helvetica iceland tumblr.

GET THAT DOWNLOAD

Email

Name

"Margi's guide was kick-ass indeed and quite literally changed how I show up on social." - Jen Olmstead

oh la la!

Home
About
COACHING
ARTICLES

THE DAILY GURU

follow along 
on Instagram:

SEND ME A NOTE >

GET ON THE LIST >

@TheDailyGUru >

© MArgarita Coaching 2020  |  Design by Tonic  |  Photos by social squares & Unsplash

podcast