Five quick tips for saving a house deposit in your 20s
Have you decided that you want to become a homeowner? Not sure where to start with saving enough money for a deposit? Don’t worry, we’ve got you covered.
1. Create a budget
It may sound like ‘bank speak’, but a budget will help you get to know your finances. It can also guide you to get your money doing more for you. Whether you like using the bucketing method or the ‘pay yourself first’ method, a budget is a good place to start when there’s a financial goal you want to reach.
mymo by BCU is a useful tool that makes creating budgets easy. You can also use it to create saving goals, set bill reminders, and see how much you spend (and where) with the transaction categories.
Our home borrowing power calculator may be a useful tool when you’re working out how much your home deposit savings goal should be.
2. Focus on your long-term
Once you’ve set-up a budget, take a close look into your income and outgoings to see where exactly you spend. This is your chance to identify any small sacrifices you could make that will help you get to your goal sooner.
Pay&Save automatically saves money when you spend by rounding up your transactions. That means if you change your lunch order to a small salad instead of a large one to reduce your spending, you’ll also save money another way when you pay for it.
3. Don’t neglect other savings
Having a savings goal for a home deposit is great, but it shouldn’t be your only savings. An emergency fund is especially important. For a start, if something unexpected occurs, you won’t have to sacrifice your deposit fund to deal with it!
By setting up automatic savings transfers from your account, you’ll have one less thing to think about. Plus, you’ll regularly add to your home deposit goal and your other saving goals, which is something lenders look for.
4. Be smart
Make the most of your savings with an interest rate that helps build your balance, and avoid unnecessary fees related to your spending. Late-payment fees or account charges can soon add up and disrupt your budget and your savings.
Our Boss Saver Account rewards you with bonus interest just for using your everyday account, and we have a savings and term deposit calculator to help you see exactly how your savings could grow.
5. Celebrate along the way
A big part of successfully achieving a big financial goal is motivation. By celebrating savings milestones, you’ll be more likely to keep on track and reach your overall goal sooner.
Once your budget and savings are well on their way, you can begin to think about other parts of the home buying journey. Will you be eligible for a government first home grant? What type of home loan could suit you? It’s time to make your home-buying dream a reality.
Remember, you’re not alone. Our team is here to help you, whether you’ve started thinking about your future or are already working towards it. Get in touch or check out our First Home Buyer Checklist for more information.
Important information
Banking and Credit products issued by Police & Nurses Limited (BCU Bank).
Any advice does not take into account your objectives, financial situation or needs. Read the relevant terms and conditions, before downloading apps or acquiring any product, in considering and deciding whether it is right for you. The Target Market Determinations (TMDs) are available on our website or upon request.