Made the big decision that you want to become a homeowner but not sure where to start with saving the deposit? Don’t worry, we’ve got you.
1. Create a budget
It may sound boring, but a budget will help you get to know your finances inside out and help your money do more for you. Whether you like the 50/30/20 or the 30:30:20:20 method, a budget is a good place to start when you have a financial goal you want to reach.
mymo by P&N Bank is a handy tool that makes creating budgets easy. You can also use it to set saving goals, create bill reminders, and see how much you spend (and on what) with the transaction categories.
You may also find our home borrowing power calculator a useful tool when you’re working out how much your home deposit savings goal should be.
2. Focus on the long-term goal
Once you’ve got a budget set-up, take a deep dive into your income and outgoings to see where your money goes. This is your chance to identify the small sacrifices you can make that will help you reach your goal sooner.
Pay&Save rounds up the cost of your everyday purchases and automatically saves the difference without you having to think about. That means if you change your coffee order to a small instead of large to reduce your spending, when you pay for it you’ll also save money another way.
3. Don’t neglect other savings
Having a savings goal for a home deposit is great, but you shouldn’t forget about your other savings: especially your emergency fund. This is especially important because if something unexpected occurs, you won’t have to sacrifice your deposit fund to deal with it.
By setting up automatic transfers from your account to your savings accounts, it’s one less thing to think about. Plus, you’ll be able to regularly add to your home deposit goal and your other saving goals.
4. Be smart
Ensure you’re making the most of your savings with an interest rate that builds your balance, and avoid unnecessary fees related to your spending. Account fees or late-payment charges can soon add up and disrupt your budget and your savings.
Our Savvy Saver account rewards you with bonus interest just for using your everyday account, and we have a savings and term deposit calculator to help you see exactly how your savings can grow.
5. Celebrate the small wins
A big part of successfully achieving a significant financial goal is sticking with it and keeping motivated. By celebrating your smaller savings milestones, you’ll be more likely to reach your overall goal.
Once you’re on the way and your budget and savings are working well for you, you can begin to think about other parts of the home buying journey. Will you be eligible for government first home assistance? What type of home loan may suit you and your future plans? It’s time to make your home-buying dream come true.
We’re here to help
They may be quick tips, but we wouldn’t leave you to do them completely on your own!
Whether you're just starting to think about buying your first home, or you're already saving, our team is here to answer your questions. Plus, we have a handy First Home Buyer Checklist to help you get started.
Important information
Banking and Credit products issued by Police & Nurses Limited (P&N Bank).
Any advice does not take into account your objectives, financial situation or needs. Read the relevant terms and conditions, before downloading apps or acquiring any product, in considering and deciding whether it is right for you. The Target Market Determinations (TMDs) are available on our website or upon request.