Are You Struggling to Save For Your Home or Investment Property?

September 13th, 2023

Introduction

Saving money for a home deposit or investment property can be challenging. Life often gets in the way, with expenses popping up and making it hard to put money aside. But with some discipline and smart strategies, you can build up your savings over time. Here are some great tips to help you save for your first home or next investment property.

Automatically Set Aside Savings When You Get Paid

One of the best things you can do is pay yourself first. As soon as you get paid, have a portion automatically transferred into a separate savings account.

How It Works

  • Decide on a savings percentage – 10-15% is a good goal.
  • Set up automatic transfers from your regular bank account into the savings account.
  • Treat this savings as untouchable except for emergencies.

The Benefits

  • Removes temptation to spend the money
  • Helps you adjust spending habits to live on remaining income
  • Shows discipline and saving ability to lenders

Use a High-Interest Savings Account

Choose a savings account that offers a high interest rate so your money grows faster. Online banks often offer the best rates.

Things to Look For

  • High interest percentage
  • Low or no fees
  • Easy to set up transfers

How It Helps

  • Makes your deposits work harder through compound interest
  • Grows your savings faster with money you earn along the way

Make Regular Contributions

Consistency and time are key when saving up. Make regular monthly contributions no matter how small. Over time it will add up.

Ways to Contribute

  • Set up automatic monthly transfers
  • Schedule periodic bonuses or tax refunds
  • Round up debit purchases to transfer change

The Power of Time + Consistency

  • Monthly contributions of even $200 can add up to tens of thousands over a few years
  • Missing contributions here and there will significantly slow progress
  • Start early for the power of compound growth

Limit Lifestyle Inflation

As your income rises over time, avoid increasing your spending at the same rate. Control lifestyle inflation and direct that extra income into savings.

How to Keep Lifestyle Inflation Low

  • Continue living like you were on a lower income
  • Evaluate wants versus needs
  • Weigh value of additional spending against saving goals
  • Set savings goals to take priority

Why It Matters

  • Inflated spending can delay your savings goals for years
  • The more you save and the earlier you start, the faster you reach your goals

Saving up for a big goal like a home requires discipline, but it is achievable. Follow these tips to maximize your savings over time. For personalized guidance and strategies, contact me at (0433 213 993) to discuss your specific situation and savings goals. Together we can craft a plan to get you into your own home or investment property sooner.

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