If you’re looking up how to save for a house, you’re probably pretty motivated about a financial goal.
Saving money can feel like a dreadful task, especially when there are so many different methods and strategies to choose from. But, it doesn’t have to be so overwhelming. Even small changes can make a big impact in the long run and bring you closer to your property financing target.
That’s why we’ve put together a list of our genius tips that can help make saving money a little bit easier. Remember, what works for one person may not work for everyone. It’s important to take your personal circumstances and needs into consideration and find what works best for you.
1. Put your savings in a high interest savings account
Are you feeling a little frustrated with the low return on your savings at your current bank? You’re not alone. A lot of savings accounts out there are only offering a tiny percentage in interest. But don’t worry, you can get better!
Some banks offer high-yield savings accounts that can earn you more than the average interest rate. You can set up an account specifically for saving up for a house deposit goal to keep you on track.
Pro tip: have you considered looking into online banks (aka neobanks)? They often offer higher interest rates than traditional banks. That’s because they have lower overhead costs, so they can pass those savings on to you in the form of higher rates. It’s definitely worth checking out!
2. Try the ‘last digit savings’ trick
Have you heard of the “last digit savings” trick? It’s a super easy way to save money without even thinking about it. All you have to do is take a quick look at your checking account balance every day and move the dollar value of the last digit into your savings account.
For example, at the end of the day, if you have $2,508, you move $8 into your savings account. It might not sound like a lot, but it can add up quickly.
One TikTok user, @budgetbrospodcast, shared a video about how they’ve been using this trick for a week and have already saved $24. Can you imagine how much they’ll have saved after a year? It’s a great way to build a savings habit without feeling like you’re sacrificing a lot.
Pro tip: If you’re looking for more money-saving tips, TikTok is a great place to find them. Just search for videos under #budgeting and you’ll be on your way to saving for that house deposit.
3. Use a budgeting app
Budgeting apps are a great way to track your expenses and help you save without making too much effort.
Frollo, for instance, is one of the most popular money management apps in Australia. It connects to your bank account and lets you set up different savings goals, like a rainy day fund or holiday shopping.
You can even choose how much you want to save per day, so it’s flexible for different income levels. It’s like a little helper that makes sure you’re saving every dollar you can!
4. Stack your coupons and rewards
Another trick that can help you save even more is “reward stacking.” This means using multiple rewards programs, like cash-back credit cards, store rewards, and cash-back apps like Cashrewards or Shopback, to earn rewards on top of rewards.
These apps have hundreds of shops on board, so you get a little money back for every purchase you make. The cash back percentage might not seem like a lot, but they run lots of promos that can boost your cash back potential. Plus, they notify you if they find a coupon code you can use in addition to getting cash back. It’s like getting a discount without even trying!
It might take a little bit of time to build up your rewards, but it’s totally worth it in the long run. So, give these tricks a try and see how much you can save! It doesn’t have to be hard or intimidating to start saving for a house!
5. Be creative with your meals at home
You know what mom always says, “you have food at home!” And you know what, she’s right. Sometimes it’s easy to get caught up in the grocery store and buy things we don’t really need.
But, using up the ingredients we already have on hand can save us a lot of money and trips to the store. And if you’re stuck on what to cook, don’t worry! The website My Fridge Food and can help you come up with delicious recipes using just what you have on hand.
Or you can even use an AI software like ChatGPT and type ‘show me recipes for the following ingredients’ into the search and see what they come up with!
While you’re at it, remember that meal prepping is one of the best ways to save money. Cook in large batches so you always have something in the fridge when you’re hungry. That’ll keep you from the temptation of opening UberEats.
6. Bundle your streaming subscriptions
Another money saving tip is to be mindful of your streaming service subscriptions. It can be tempting to subscribe to them all, but it can add up quickly.
A great way to save money is by signing up for bundle offers, where you get at least two streaming services for less than it would cost to pay for them separately. Telcom companies like Telstra and Optus offer this kind of thing.
7. Start saving for Christmas at the start of the year
You know how it goes, the holiday season rolls around and all of a sudden you realise you spent way more on gifts than you planned. But, what if we told you that you don’t have to wait till November to start budgeting for gifts.
By saving a little bit of money every month, you can build up a nice gift fund and have it ready when the holiday season comes around. For example, if you save just $20 a month, by November you’ll have $200 set aside just for gifts. That way, when it comes time to shop you can use the money you saved, instead of dipping into your regular budget.
Pro tip: some of us also like to keep track of what they want to gift family members and friends. That way, when a sale rolls around for that particular gift, you can buy it early and store it in time for Christmas.
8. Stop shopping when you’re bored
This may seem like a no-brainer, but a lot of us tend to shop without even realising it.
With targeted ads on our phones and even prompts in television, it’s hard to get away from it. But shopping, discounted or otherwise, leaves a gaping hole in our pockets.
Set a personal challenge with yourself to not buy anything. When you do need to make a purchase, list five reasons you need the item and tell a friend or family member about it. That way, you stay accountable.
Or when you do give into your spending habits, try the $1 rule—this is when item you buy amounts to less than $1 per use.
For example, if you want to buy a a winter jacket at $100, ask yourself how many times that year you’ll wear it. If it’s a winter jacket, and you’ll only need it for two months of the year, it won’t add up. You’ll need to wear it over a hundred times that year to qualify the expense. So, are you going to buy it now?
9. Check out the first home owner grant
The first home owner grant, also known as the home guarantee scheme, is a government schedule that helps eligible first home buyers buy property with just 5% on the home deposit.
You have to earn under $125,00 to qualify, or less than $200,000 if you’re in a couple. Also, the competition can be fierce, with only 35,000 spots a year.
Still, the first home owner grant could be a great opportunity to help you with your home loan deposit. With conveyancing fees, stamp duty and mortgage repayments, there’s a lot to take on and this is a leg up.
Click here for more info on government schemes.
10. And the First Home Super Saver scheme
Did you know that if you’ve made any voluntary contributions to your superannuation in recent years, you could have a large sum of money saved up for your first home deposit? The First Home Super Saver (FHSS) scheme allows buyers to withdraw these voluntary contributions up to $50,000. That’s a pretty sweet deal!
Of course, there are some conditions to access the FHSS such as being able to withdraw a maximum of $15,000 per financial year, and an accumulative total limit of $50,000.
But, if you use your super to save for your deposit and it performs well, you can earn a good amount of interest and reach your deposit goal faster than you would with a regular savings account.
Saving for a house can be a daunting task, but with a little bit of creativity and determination, you can take your first step onto the property ladder. It’s important to set a clear goal for your home deposit, track your spending, find ways to increase your income, reduce your housing expenses, cut back on entertainment expenses, use savings apps, set up a specific savings account, and be patient and persistent.
Remember that saving for a house deposit is a huge step and requires a long-term commitment, so it’s essential to be realistic about your goals and to work hard to achieve them. Keep track of the property market