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07
Apr 17

How Do Other People Save For Their Deposit?

by Matthew Ikin
How do other people save for their deposit new

How Do Other People Save For Their Deposit?

You’ve heard all the savings tips before, but have you seen these tips working in action? Seeing how individuals just like yourself have implemented savings tips could give you the confidence to do the same. The accomplishment of owning your own home is very rewarding and by taking inspiration from others you could be putting your savings towards a home sooner than you think.

Ben’s Tip: Ditching the credit card

Whilst saving for a deposit, you may be stretched for cash. During this time it might be tempting to tide yourself over with a credit card, but it may not be the best place to seek refuge. If you have access to a credit card you may find yourself using it to purchase unnecessary items. Then when the balance becomes due you might need your house savings to cover it. Without a credit card your purchases will have to come directly from your savings which may make you think to yourself “Do I really need this?” Avoiding these little (or big) buys will help you reach your savings goal and get you into that new home faster.

Krishna’s Tip: Eliminate the luxuries

As painful as it sounds, the area that will make the most positive impact on your savings is cutting down on luxuries. You can start by downgrading or cutting out little luxuries and put the money you save on these items into a separate account. It may be a shock to cut down on all your luxuries at once, so start by removing one per month, pocketing the savings and then repeating each month. By the time you have cut down five or so luxuries you will have almost forgotten the first one you eliminated. For example if you normally spend $15 per day buying lunch, then just by bringing food from home you could save yourself up to $3,700 a year!”.

Tom’s Tip: Have a savings account

Having all these savings is great, but if you are keeping them in the same account as your income and outgoings it could be a recipe for disaster. Instead you could try opening a new savings account for free with your current bank which has limitations on what you can withdraw. This will enable you to keep the funds safe. Make the most of the new account by setting up a direct deposit from your everyday account to the savings account the day after you receive your income. You will be less likely to spend your pay if it goes straight into your savings. 

Pioneer Credit Connect Tip: Make sure the account doesn’t have a card attached to it, this will make it even harder to access and help you resist the temptation to spend your money.