Ten things I did to successfully save a house deposit

Saving up a house deposit can take years but don’t despair. Here’s 10 ways I saved for my first home.

Ideally borrowers should save up at least a 10 per cent house deposit.

Saving up a 5 per cent deposit is far from ideal, despite this being the harebrained idea that was thrown our way during the recent federal election.

Let’s not forget that the smaller the deposit, the bigger the loan you end up with and the longer it will take you to pay back.

When I purchased my first home back in 2012 I spent years prior squirrelling away cash to finally make my dream of owning my own four walls happen.

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I’m not going to be pretend it wasn’t tough because, let’s be honest, saving sure isn’t sexy.

Here’s 10 things I suggest doing to make your dream of owning property come true.

1. Open up a separate savings account

This is a must. You need to keep your money stashed where you won’t be tempted to spend it. I suggest an online savings account that has no card attached to get you started.

2. Automatic savings

Set up a direct debit from your salary each week. It doesn’t matter how little it is but make sure it’s automatic. That way the money just rolls into a separate account without you even thinking about it.

3. Set a goal

Work out how much you ideally want to save, and a time frame too. Just remember that saving a house deposit can take years, so be patient.

Saving a house deposit take times and can involve years of tucking away cash.

4. Share house

OK, it might not be your ideal situation but I sucked it up and lived with friends for years while saving a deposit. It helped to significantly cut my rental costs.

5. Packed lunches

Almost religiously, even today, I make my lunch. The cost of buying food every day adds up, so do a weekly grocery shop and plan your lunches. This is one of the easiest way to cut costs.

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6. Avoid credit

Pay with your own cash. Using credit always means it’s money you are left having to pay back, so ditch using credit cards, personal loans or buy now, pay later schemes.

7. Overseas holidays

I limited my getaways when I had my sights firmly on saving. Splashing money on overseas adventures will set you back. Consider holidaying domestically instead.

8. Rely on no-one

While it might seem great to save a deposit up with a partner or friend, things can change quickly. Start saving on your own, and if it so happens you have a good other half down the track that can meet you halfway, then that’s a bonus.

9. Get pre-approval

Once your closer to saving a decent chunk of cash visit a mortgage broker or bank to get pre-approval for a loan. It’s free too. This will help you know exactly where you stand and give you a realistic idea of what you can afford.

10. Happy days

The biggest reward waits until the end. Being able to sign the dotted line on a property contract. This feeling is a good as it gets and your hard work will pay off.

Happy saving!

@sophieelsworth

Originally published as Ten things I did to successfully save a house deposit