How your clients can quickly save for a deposit on their first home
Saving for the deposit on a first home can be exciting for your clients, but it can also end up being tedious and drawn-out. They will want to speed up the process in order to save themselves money in the long run and get into their home quicker. This does call for some sacrifices, however drastic measures won’t be sustainable.
Before creating a budget, they'll need to identify what they are currently spending money on. They can use an app (such as Spending Tracker) or a simple notebook and pen to record purchases and income. This is often an eye-opening activity and will make it easier to decide on what they can cut back on. Free budget planners online (PocketBook is a great one to use) helps users manage money and keep on top of personal finances.
If it’s unlikely that they’ll be considered for a raise at work, they'll need to think about other ways they can increase income. Do they have items they no longer use that they can sell? Talents they can utilise, like teaching a musical instrument, tutoring or even dog walking? Airbnb is a great option if they have a spare room they can rent out in their current home. If they don’t use their car much, they can consider a peer-to-peer sharing scheme such as Car Next Door to make extra cash by renting out their vehicle.
Speaking of vehicles, most households have more than one car, but is this vital for your client? Selling a car will give them more money to put away, as well as saving them from the costs of registration and servicing.
If they’re planning to buy a home with someone else, they can motivate each other to save. They can compare notes and even have a friendly competition to see who can save quicker.
While saving for a deposit can be challenging, it doesn’t need to be stressful. The money saving tips they will learn along the way will always come in handy, even when they’re sitting comfortably and content in their new home.