Saving for that first home is much harder than it was decades earlier, but it doesn’t mean it is impossible. While not all of us are able to move in with the rents for a few years while saving, or able to get a good pay rise, you can still get that first deposit sorted if you are willing to sacrifice a couple leisurely spends.
Pay off your debts
Before you start requesting another loan from the bank, you should start handling your other debts first. While it may be frustrating putting money towards debt that you could potentially put aside, a clean, debt-free slate is much easier to manage than multiple repayment schemes. The first step in saving is making sure you aren’t riddled with other repayments.
Try to sell before tossing
First of all, establish what exactly in your house has value to you, and what can be tossed. This is also where converting to a minimalist lifestyle can be beneficial. If you have furniture, clothing or homewares that you just don’t need, compile them together and start selling. Create an eBay account, go on social media, wherever you think you could profit from those second-hand goods.
Make an automatic deposit
If you’re making more money than you need to live, then you should be able to automatically transfer certain amounts into a savings account. This means you won’t be tempted to spend it on that dinner out or that new item of clothing you really don’t need. A good start is 10% of your pay automatically transferred.
Save those bonuses
Got a little commission you weren’t expecting? Or a hefty tax refund? Put that extra money straight into your savings account. Every bonus check equals one week less of tight saving, and you can splurge on those extra bits once you’ve reached the amount.
There’s no wonder why millennials are so enticed by thrift shopping. The savvy, vintage option is not only hugely trendy, but your pockets will thank you too! Consider perusing your local op shops for old furniture and clothes before new purchases.
The little things count
From opting for an at-home coffee instead of at the coffee shop, to enjoying a homecooked meal over dinner out, it’s those little splurges that can add up to a lot of savings. It could be beneficial to make yourself a list of all those extra expenditures that you make each week, and calculate how much you end up spending over a year. Once you see how much money you’re frivolously wasting, you’ll be quick to choose the savvy options first.
Remember, you can still have fun while you’re saving. Let yourself have a couple indulgences every once in a while, but always revert back to your stiff saving after!