Debbie Shankar - 19 Sep, 2014

Saving for a Deposit Without Missing Out

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It’s human nature to want nice things and to spoil ourselves every now and then. But, when you’re saving for a home deposit often every cent counts. This, however, doesn’t mean that you need to miss out all together.

Most of us forget about long-term goals and tend to focus on short-term satisfaction. We also tend to think it’s all or nothing. In terms of saving a home deposit, these two factors can often stall your savings plan or ambush it completely. So how can you move beyond these problems? Let’s have a look at some solutions now.

How can I move past short-term satisfaction?

Visualise your goal – Go out and look at property, visit display homes and open inspections get to know the property market and what you can and cannot afford. Visualise your home and continually remind yourself about what you’re saving for.

Set yourself milestones – Set yourself milestones to achievement, rather than telling yourself you need to save $40,000 for a home deposit, tell yourself you need to save $5,000. Then when you reach this milestone congratulate yourself and set yourself a new milestone of $10,000. Continually set yourself new milestones until you reach your goal.

How can I move past the all or nothing perspective?

Reduce your spending, but allow yourself small rewards – Eating out for dinner, buying yourself a coffee on your way to work every day and buying your lunch may have to be a luxury. But, this doesn’t mean that you have to go without constantly. Instead, reward yourself when you reach smaller milestones. For example, for every $5,000.00 you save towards your deposit go out with your friends and celebrate. Alternatively, you can also buy yourself a treat once every few months such as a coffee or your lunch.

Be vigilant – Resist the urge to spend. Set-up a high interest account that’s separate from your every day account. Develop good saving’s habits and don’t spend money on items that are not a necessity. Cut up your credit cards and pay-out your debt. This will reduce your expenses and allow you to save more. Lastly, tell your friends and family about your long-term goals and ask them to encourage you to save.

Overall, remember that it will take you time to change your behaviours, but the reward is significant. Keep that picture of your buying your own home in your mind and think of it when you have the urge to spend.

Do you want more advice on how to save for a home deposit? Then contact eChoice and find the right solution for YOU.

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