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Five ways to slash your spending and save a home deposit

Thinking of buying a new house in the near future? It is never too early to start saving!

First things first, get excited about saving. Your mindset and emotions can play a huge part in how quickly you achieve your goals. If you’re miserable about saving and feel like you’re restricted, you will splurge. However, if you’re happy about saving and genuinely excited about your end goal (A new house!), you will keep saving regardless of what financial hurdles life throws at you. A great way to stay excited and motivated is to set mini-goals. It’s easier and more achievable to stay on track if you’re aiming to save $5,000 in 3 months than thinking about saving $200,000.

So, what are some ways to slash your spending?

1.Transfer it straight out of your pay

Schedule an automatic payment to transfer across to savings as soon as you get paid. You don’t miss what you don’t have and by transferring across early, you will then figure out how to live with just the remainder. If you leave it in your account and transfer it at the end of the pay week, it is easy to forget that you’re saving. However, you’re welcome to transfer over any additional funds you have at the end of the week to top up your savings!

2. Adjust your lifestyle

Seriously evaluate your current lifestyle. Do you need the newest iPhone? Do you need a daily coffee? Start noting down what you spend your money on. You don’t have to live on the poverty line to save for a house deposit. Just evaluate what you value and what can be reduced or replaced for cheaper alternative options. Could you purchase the cheaper alternatives in the supermarket? E.g. the cheaper bread, milk, jam, or cereal? Every small bit adds up!

3. Think outside the box for your entertainment

Can you host a pot-luck dinner party instead of going to that fancy fine dining restaurant? Could you host drinks at your place before going out? Entertainment can be a huge drain on your savings. Think about what else you could do instead of eating out, shopping, or buying the newest gadget.

4. Get used to saying ‘no’

Saving is hard. It’s even harder when you feel like you’re missing out and your friends make you feel bad for being ‘boring’. You then, in turn, end up going out and spending more money. Start getting used to saying no and don’t feel bad about it. Every time you’re debating about spending more money, just imagine the joy you’ll get from owning your own home and how not spending will get you one step closer.

5. Review your subscriptions

Do you need all the subscriptions you’re paying for? Are you getting the value you’re paying for? Start by making a list of all your subscriptions – Netflix, Spotify, apple music, gym, and insurances such as a car, health, and home.

Finally, decide if you are using all of these enough to gain value for them? Do you attend the gym enough? Are you able to combine subscriptions for some – e.g. Netflix, Spotify family? Can you review your insurances and reduce your cover or maybe shop around and see if there are cheaper options? Although subscriptions, especially insurance, seem important and make life easier and more entertaining, it always pays to review and compare competitors to ensure you’re getting the best deal for you and your family.