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22 October 2021

Successful saving strategies for your dream home

BY CANNA CAMPBELL

Aspiring to save up for your first home is an exciting goal to have. The anticipation of freedom that comes with working towards this new chapter is empowering. It’s the idyllic dream of having a place to call your very own, where you are free to style, decorate and renovate to your heart’s content!

But the thought of increased responsibilities and hurdles towards financial goals can be discouraging. When I was saving for my first home, there were definitely times where I lost motivation, as I became frustrated with the low interest rate environment, increasing cost of living and soaring property prices.

I swear my tooth fairy money was included in my deposit, which I saved for over 6 years!
However, I persevered, pushed through the roadblocks and eventually, had the keys to my first home, a small 2-bedroom apartment. It was hard work, took sacrifices, lots of self-discipline and focus, but it was so worth it.

This is what I did to help me achieve my goal and dream:

  1. A dedicated savings account – the moment I set this goal for myself, I opened up an online savings account, with no fees and the most competitive interest rate I could find. Every dollar that went into this account was for my deposit. Separating this account from my everyday spending account was a godsend because it allowed me to effectively compartmentalise my savings, so I had maximum clarity on how much I needed to spend and save.
  2. I nicknamed this savings account “My Deposit Money” – so if I was ever tempted to dip into my savings and splurge on something shiny, I would be immediately reminded of the goal I was jeopardising. I would pause and reflect on whether this expense was worth delaying my dreams. Also, by nicknaming this account in alignment with my goal, I found myself more inspired to reach the magic number. I tackled this challenge like a game and it made saving more enjoyable!
  3. Mini manageable goals – even though I needed a huge deposit, I broke this number down, into small, manageable and achievable goals, similar to ‘The $1000 Project’ I created for my investment goals. This makes the number seem less intimidating and more achievable. I would focus on saving parcels of $1000 at a time, transfer this into my dedicated online “Deposit Money” savings account and repeat this process until I had my deposit.
  4. Side hustles – I refused to let my income be bound to my corporate salary. There are always additional opportunities to generate extra money. I did babysitting work, market research and sold items I no longer needed. At one stage, I even delivered pamphlets to help earn additional cash. Every extra dollar that I earned, went towards my savings account.
  5. Rewards – saving can at times be exhausting, even when our motivation is peaking. A great tip to stay invigorated, is imagining you have already achieved your goals. Visualise what your life would be like and implement these actions in real life. Sometimes I would buy an interior decorating magazine to boost my excitement for design or take a stroll in my dream suburb and retain those exhilarating feelings to boost my stamina.
  6. Budget – I wrote out all my living expenses, and then deducted them from my after-tax pay to see how much I could save on a regular basis. Once I did this, I continuously reviewed my living expenses to see where I could reduce costs. This did involve cutting down or eliminating certain expenses, but it enabled me to save up for a deposit faster, which made the sacrifices worth it.
  7. My imaginary mortgage – I was fortunate enough to live at home, but it was under strict conditions that I save up for a mortgage. As I gradually got closer to achieving my goal, I worked towards increasing my regular savings (transferred into the “My Deposit Money” account) so it matched my potential mortgage repayments, I even factored in a few interest rate rises. This way, the transition into the mortgage world wasn’t drastic and I had the confidence to know “I could handle this”.

Saving for a mortgage deposit requires discipline. While the initial journey may seem littered with challenges, seeing the eventual fruits of your labour will be a rewarding moment. Trust me on this. My own deposit saving journey highlighted a lesson that still reverberates to this day: short term pleasures fade, but you can reap the rewards of long-term goals for a lifetime and when you achieve your goal, the emotional joy is priceless.

Ready to get started? Got your notepad ready? Grill our home loan specialists with all the right questions.
Call us on 1800 100 258.

Canna is the founder of the financial media platform, SugarmammaTV, and author of financial advice books The $1000 Project and Mindful Money. She comes from a corporate finance background and is a licensed financial planner. SugarmammaTV provides educational content that helps make money and finance more approachable. She is also the founder and director of financial planning firm, SASS Financial Services.




This article was prepared in partnership with ING. The information provided in this article is of a general nature only and does not consider your personal objectives, financial situation or particular needs. The views expressed in this article are provided independently by Canna Campbell, a Financial Planner and an Authorised Representative of Wealthstream Financial Group Pty Ltd (AR 000309372) featured in the article. ING makes no warranty as to the accuracy, completeness or reliability of the information, nor does ING accept any liability or responsibility arising in any way from omissions or errors contained in the content. ING does not recommend any products, services or financial strategies mentioned in this article. ING strongly recommends that you obtain independent advice before you act on the content. Canna Campbell uses ING’s trademarks under arrangement with ING. ING is a business name of ING Bank (Australia) Limited, ABN 24 000 893 292, AFSL and Australian credit licence 229823.

The information is current as at publication. Any advice on this website does not take into account your objectives, financial situation or needs and you should consider whether it is appropriate for you. Deposit products, savings products, credit card and home loan products are issued by ING, a business name of ING Bank (Australia) Limited ABN 24 000 893 292, AFSL and Australian Credit Licence 229823. ING Living Super (which is part of the ING Superannuation Fund ABN 13 355 603 448) is issued by Diversa Trustees Limited ABN 49 006 421 638, AFSL 235153 RSE L0000635. The insurance cover offered by ING Living Super is provided by Metlife Insurance Limited ABN 75 004 274 882, AFSL 238096. ING Insurance is issued by Auto & General Insurance Company Limited (AGIC) ABN 42 111 586 353 AFSL Licence No 285571 as insurer. It is distributed by Auto & General Services Pty Ltd (AGS) ABN 61 003 617 909 AFSL 241411 and by ING as an Authorised Representative AR 1247634 of AGS. All applications for credit are subject to ING's credit approval criteria, and fees and charges apply. You should consider the relevant Product Disclosure Statement, Terms and Conditions, Fees and Limits Schedule, Financial Services Guide, Key Facts Sheet and Credit Guide available at ing.com.au when deciding whether to acquire, or to continue to hold, a product. Before interacting with us via our social media platforms, please take a minute to familiarise yourself with our Social Media User Terms https://www.ing.com.au/pdf/Social_Media_User_Terms.pdf.

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