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Top 4 Ways To Save For Your First Home

Saving for a deposit for your first home may seem overwhelming with just the thought of it, but alas Moneysoft is here to offer some tips to make this possible. 1. Take It Straight Out Of Your Pay Trying to save what is left after spending for the entire month is very difficult. Save your money as soon as you get paid – and then budget for the rest of the month. A good start is to take 10% of your pay straight away and set up an automatic transferal so you don’t actual see the money, therefore if you can’t see it you won’t miss it! 2. Downgrade Your Car As mentioned in one of our recent Facebook posts - ‘Don’t justify a new car or new tech gadgets as investments. You’re unlikely to recoup the full cost, which means these are depreciating assets —not something you want in an investment.’ A car is a depreciating asset but more importantly it’s expensive to maintain. Most couples own two cars; if you can live with one car, sell the other and put the money towards your deposit – then calculate the money you would have spent on the maintenance and save that also. If you have one car, consider maybe a cheaper automobile. Sell your car and buy a second-hand car, saving the remainder. You can always upgrade again once you have purchased your home. 3. Rent A Room Out Do you have a spare room, granny flat or garage that isn’t being used? Maybe renting them out to earn some extra income may just be a step closer to saving for your first home. Renting a room costs anywhere between $50-$200* a week (*prices vary depending on the room, property, suburb etc – this is only an example). That’s $2,600 - $10,400 extra per week that you could be putting towards your deposit. Furthermore, if you live in a busy area, renting out your driveway or garage is very common. It’s a bit of extra cash if you are not using the car spot! Please note: consult a professional to assist you in regards to rental agreements and the legalities to sublet your property, a room or a car spot. 4. Create A Second Income For Yourself There are many websites, fortunately, for everyone to help make a bit of extra cash, whether it be surveys, blogging, doing voiceovers or making graphics. One site we recently came across is – great for graphic and designs, online marketing, copywriters, translations and people who blog in their spare time. This is a great way to join a well-known community and make some cash on the side. Some other helpful hints: