How you can save for a house while paying rent
It’s a hurdle many Australians face, how do you save a deposit while paying rent? Although you may think it’s out of reach it’s not impossible.
Below is my advice on how to meet your rental payments and save some money on the side for a deposit.
Sit down and work out exactly how much your spending every week.This will help you to work out if you have space to consolidate or eliminate any debt especially credit cards or personal loans.
Identify living expenses and see where you can cut costs, if you spend $90 a week on petrol consider catching transport to work. Also think about the unnecessary expenses the main being store bought coffee, here you could save up to $1092 per year just by making a coffee at home or work. Bringing your lunch from home could save you anywhere up to $50 a week ($2600 per year)
Basically, how much you can potentially save comes down to you and being disciplined. Designating a separate bank account for your home deposit is a great idea, that way you can monitor exactly how much you’re saving, therefore making your dream a reality.
This can easily be done by having a housemate share the expense with you, moving to a more affordable area and or downsizing to a smaller place. Just to provide you an example a saving of $80 per week on rent could add more than $4000 to your savings each year.
BE STRONG & RESIST TEMPTATION
It’s always easy to fall into the trap of impulse buys because it’s cheap, however learning to resist temptation will be the difference of owing your home sooner.
Next time you’re out and about and see something you WANT really think about if you NEED it, focus on the bigger picture in front of you… owing your own home sooner.