How to save to buy your first home @ Monument

It has never been easier to save up and secure your first new home than it is in 2020 with the assistance schemes available for First Home Buyers (FHB).
However lending institutions still require a strong savings history and evidence of income.
Here are some tips on how you can get your deposit and move into your first home.

CREATE A BUDGET

Write down all of your income, bills and expenses for the next 12 months.
As well as including your weekly living expenses (groceries, rent or mortgage payments, petrol etc.), a detailed budget will also factor in your monthly, quarterly and annual expenses, such as school fees, car registration, council rates, birthdays and Christmas.
Set aside extra funds for those unexpected expenses (vet bills, repairs etc.) that will inevitably come up.
This will reveal where money can be saved and how bill payments can be smoothed (utility companies in particular can be helpful in this area) to make cash flow management easier. Further, once you have a budget in place, there are fewer surprises, which makes it easier to save regularly for your home deposit.

SOME SIMPLE TRICKS

Open a dedicated savings account
A dedicated bank account keeps your savings separate from the money you use for your living expenses and bills. The harder it is to access the account, the better. Keep the access card in a safe place that’s not your wallet or purse.

Reduce your credit card debt/balance
The available credit on your card – regardless of the debt – is taken into account by lenders when calculating your credit risk and ability to repay loans.
Therefore, if you have a couple of credit cards with large spending limits that you have never used or needed then think of asking the bank to reduce this limit or get rid of them.

Automate your savings
Set up an automatic transfer so that a portion of every pay you receive is deposited directly into your dedicated savings account.

Cut your spending
The ability to save is more affected by how much you spend than how much you earn. The less you spend, the more you can save. Go through your expenses and work out what you can cut back on. Lunches, dinners, coffees, clothes etc add up over time and the money works much better for you in your savings account!

ASIC has created a simple online budget planner to allow you to manage your money.
https://www.moneysmart.gov.au/tools-and-resources/calculators-and-apps/budget-planner

Alternatively, you can use a company such as MyBudget.
https://www.mybudget.com.au/teach-me-about/ultimate-saving-money-guide/

• MoneyBrilliant
• Pocketbook
• Spendee
• Moneytree
• Or the many apps offered by your bank or financial institution that allow you to see your spending and savings habits*

*The above products are suggestions only, you need to check the application and product description for its suitability for your personal requirements.