5 Tips for Saving the Deposit for Your First Home

Author: Miguel Gonzalez

Saving is never easy, but with a strategy in place to make your savings grow and grow, you can cut down the time to owning your own home. There’re two ways you can save your deposit faster: save more and spend less. It’s that simple.


Here are some ideas to get you started.

1. Know how much you need for a deposit. The first step towards saving your deposit is to talk to a mortgage advisor to help you determine what you can afford to borrow and how much you’ll need for a deposit.

2. Know what your income is and where it’s going. You may know how much money you receive each week, fortnight or month, but can you track exactly what you’re spending it on?

    A budget planner or spending tracker is a great tool to help you understand where you goes.

3. Open a high interest savings account. Once you know how much money you have at the end of your pay cycle you can allocate some or all of it to a regular savings plan on an account that rewards you for increasing the balance.

4. Cut some expenses. After you work out where you’re spending your money you can make some decisions as to where you can cut back. This may mean having two cups of coffee per day rather than three, saving you over $1000 in a year with small change.

5. Tell family and friends about your goal. You can enlist the people around you to help support your goal and encourage the change in habits needed to make your dream a reality. Having support from those close to you will make a huge difference to whether or not you succeed.

Making a plan is the first step towards buying a home. Talk to us to explore your options and kick-start your journey.


General Advice Disclosure: This document contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. If you decide to purchase or vary a financial product, your financial adviser, AMP Financial Planning and other companies within the AMP Group may receive fees and other benefits. The fees will be a dollar amount and/or a percentage of either the premium you pay or the value of your investment. Please contact us if you want more information.