There’s been a lot of discussion recently about the youth of today spending too much money on smashed avocado and coffee is stopping you from saving a deposit for your property, I would really like to know how many smashed avocados and coffees are you having every week?
Every individual has different aspirations and goals in life, some want to travel the world, some want to learn a new language, some want to have their own café/restaurant and some want to be property investors.
Working in the finance industry, I come across many different people in various professions and I get to learn many things from them.
Of course you need to save some money in order to buy your first property, unless you have your parents who are willing to help with the deposit or as a guarantor I cannot see a reason why young people can’t buy their first property without losing their lifestyle.
I know a lot of my young clients have travelled the World, go out and socialise with family and friends and have still been able to save and put money towards the deposit of their house.
Here are a few tips which can help you save money quickly and effectively while maintaining a decent lifestyle.
Record and analyse your spending habits over a month to reveal opportunities for savings. There are lots of apps that can help you track this. Include everything from rent, transport, coffees, ubers to meals out. These everyday extras can add up over time. For instance, two takeaway coffees a day can cost up to $200 a month; money that could be put towards a deposit for your first home.
When you have a good understanding of what you spend your money on each month, prepare a budget and stick to it. Avoid spending on non-essential items and impulse purchases, as this type of spending delays your dream of owning your own home.
If you want to take a holiday, plan it well in advance to get the best deals, and travel outside peak seasons. You could save hundreds, maybe thousands and that extra cash can go straight into your savings.
Move back in with your parents. Sure, this may not be for everyone, but board at your folk’s place is probably going to be a lot cheaper than your rent, which can be as much as a third or half your monthly salary.
If you put a few of these tips into action, with some small, short term sacrifices and plenty of planning, you’ll have a deposit for your first home in no time.
To understand your borrowing capacity and to get some advice with regards to budgeting, please gives us a call on 0487 344 352 for a free no obligation service.