Tips for saving for a home loan

Saving’s impossible right? Ask around and you’ll find plenty of people do manage to save for a home. Their goal might take years to achieve, but it pays off in the end. Here are some tips on how to save:

  • Track your spending: keep a diary for a month or use a smartphone app such as Expense Manager to find out what you are actually spending your money on. This exercise is a real eye opener for some people.
  • Write a budget: start by using the totals from your spending diary, then look for ways to cut down certain areas and find money within your money.
  • Find something to give up:do you smoke, drink, eat takeaways, buy expensive makeup, or go out too many nights a week?Saving for a first home requires sacrifices and virtually everyone can find something to give up.
  • Cut up your credit cards: if you spend cash you’ll spend less. Once the cash is gone for the week or month the spending will stop in its tracks.
  • Join KiwiSaver:The more you save into KiwiSaver the greater the deposit first home buyers can accumulate.
  • Moonlight: get a second job,work overtime, or start a small business ““ even if it’s only window cleaning or babysitting. All money is good money when you’re saving for a deposit.
  • Swallow your pride: accept that for a few years you may not have all the flash things your friends buy or the expensive nights out. Over time, however, home ownership will almost certainly lead to a better standard of living.
  • Ask around for ideas: ask your friends and whānau for tips on saving money.
  • Make yourself more employable or indispensable in your current role: Those with in-demand skills can command more in the job market, and valued employees are more likely to be better rewarded. Be prepared to upskill to get that next great job or look for opportunities to gain new skills or help out in your current role.
  • Be clever: look for unusual ways to save or make money. Sell unwanted items onTrade Me.House sit instead of rent.Or find jobs where you’re paid to sleep over.

Finally, people can and do find ways to save by being honest with themselves. Once in their own home they get the capital gain, not a landlord.

Share this article