Saving is hard.
Even the most resolute savers get lured by the bright, shiny lights of instant gratification, that buzz you get from buying a new outfit, the latest smart phone or booking that spontaneous weekend away.
Everywhere you go, there’s advertising and clever marketing ploys all designed to get you reaching for your credit card quicker than Jesse James in a shootout.
But while saving for a house deposit is challenging and can take years, it’s not impossible. We chatted to the experts at Mortgage Express, and put together a list of tips to help you get there:
- Make a goal – figure out how much you need to save – it’s much easier to stay motivated and track your progress if you’ve got an end point.
- Start saving today – even if it’s just a small amount – every little bit adds up – and you’ll be surprised at how quickly it grows.
- Set up a separate bank account for savings – and give it a name to remind you of your goal. Something like “House Savings Account” or “Touch Me And Die” are much more likely to make you think twice about making casual withdrawals.
- Make a budget – work out your costs and look at areas you might be able to cut back on. How about biking or walking to work instead of driving – to save on petrol and parking, and get fit in the process. Try making your own lunch instead of buying, or forgoing your daily flat white or weekly Women’s Day. But don’t forget you have to live too – it’s just not realistic to give up everything you enjoy. If you set up a savings plan with no room to do the things you enjoy, you could be setting yourself up to fail.
- Be shrewd with extra money – get a nice, juicy tax return? An unexpected bonus or inheritance? It can be tempting to go big and blow it on that trip to Vegas or that expensive yet ugly Peterbald cat you’ve been coveting for years, but if you put it on your house deposit, or to pay down debt, you’ll be that much closer to owning your own home.
- Join Kiwisaver if you haven’t already – you can nominate to put aside as much or as little as you like and your employer will match your contributions up to three per cent. The money is automatically taken out every payday – you might miss it to begin with, but pretty soon it will become the new normal. First home buyers that have been in Kiwisaver for more than three years are entitled to withdraw all their Kiwisaver earnings – apart from the Government’s $1000 kickstart – provided they meet the criteria. Kiwisaver provides a really good platform to enable people to save the money for their first home on their own, which can be difficult otherwise.
If you’re looking into buying your first home, and want to look at all of your options, you can call Nelson’s very own Mortgage Express advisor, Steve Holbrook – he’s more than happy to catch up with you and help you through the process.
No representation or warranty: The information in this article is given in good faith and has been prepared from published information and other sources believed to be reliable, accurate and complete at the time of preparation. No representation or warranty is given as to the accuracy and completeness of the information.