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With some of the lowest interest rates in history on offer, the mortgage market is more competitive than ever. However, many people struggle to save enough money for a home loan deposit because of the ongoing cost of living. These seven genius hacks will show you how you can cut your budget so that saving up for your home loan becomes much easier – without sacrificing too much quality of life!
Imagine if you could save $80 each week. Then imagine this balloons to $350 by the end of the month. Before you know it, a year has gone by and your bank account is healthier to the tune of $4,200.
Sound good? Now let’s make it happen with these 7 practical money-saving strategies that are easy to put in place and will get you to take notice of where your money goes.
1. Buy in bulk
Buying in bulk is a great way to save money and is best for items that you’ll use regularly like soap, toothbrushes and toilet paper.
When you’re in the shopping aisle, look for the discount tickets and stock up with enough to keep you going for a few months, rather than purchasing products once off.
Even if you’re attached to the regular name brands, there’s no reason not to try out cheaper supermarkets and alternative products to see if their just as good.
2. Shine a light on your electricity bill
The electricity bills are one of the most important home costs to consider when looking for ways to save money.
Look at getting higher efficiency equipment which will save on home energy costs. Flick the light switch when you leave a room and change your current light bulbs from incandescent globes to LEDs or compact fluorescents. Looking to alternative, energy efficient options can save you as much as 50% on the cost of lighting.
If you haven’t switched your electricity or gas provider in a while, now is the time to check out your most recent bill and see if you can get a better deal. Energy Made Easy is an independent site which allows you to compare energy and gas rates on your own, for free.
3. Try weekly home loan repayments
If your current home loan allows you to, try switching to weekly home loan repayments, instead of monthly. The more frequently you pay, the greater your savings. This is so even if you aren’t paying more than you used to, because home loan interest is calculated on a daily basis.
Making your home loan more competitive is something you should always be proactively assessing, so reach out to a mortgage broker to learn more about your options.
4. Hold off on the drinks
It can be eye-opening, but sitting down and analysing how much you’re spending on takeaway coffee or at pubs each week will make you realise there are savings to be had! You’re not alone if you realise it’s in the double or even triple digits.
Pulling back on how much you’re spending does not mean you have to miss out all together, it just means trying a new approach. A travel mug full of coffee before you leave home is a simple replacement on that $4 coffee near work. If you know you’re meeting up with friends for a night out, leave your credit card at home. Instead, opt for a pre-determined amount of cash to set aside for drinks. Try asking friends to meet at happy hour or at your place for a few drinks at home before you head out for the night.
5. Meal-prep for convenience
You can cut the amount of times you go to a restaurant or buy takeout each week if you learn how to prepare simple dishes at home. Prep on the weekend, by writing up a menu plan, then go for one big shop to set you up for the week ahead.
Start with a few easy-cook meals and add new ones over time as you grow your culinary skills. The more you prepare meals, the more efficient you’ll become and the easier it will be for you to manage your budget.
6. The piggy bank
Yes, it’s a cliche, but it definitely works. Set aside a money jar and at the end of each day, fill it with any loose money. You won’t notice the money has vanished from your wallet, but you will be shocked by how much it adds up in a year.
7. Find apps that work for you
If you lack the discipline to save, find a mobile app that takes the reins for you. You can track your spending and plan your budget if you use a dependable mobile app. You can also set up an automatic schedule of payments from your salary to your savings!
These simple steps can get you on the right track to start making the savings you need for your deposit. Start today!
The home loan process can be difficult, but these money saving hacks will help you get on the right track to the home of your dreams. Whether it’s making smarter choices at home or finding ways to save more in other areas, these tips are sure to make a difference for you and your family.