Friday, 14 December 2012

Tips for saving a deposit

Some people have it easy with obtaining the deposit for their first home – a gift from their parents, an inheritance, etc.  For the rest of us, it requires some years of hard effort. 

The key steps you need to do to build your deposit include:
  • Set a realistic target amount and timeframe – a couple of years is usually a good balance between saving enough money and driving yourself crazy with deprivation from life’s little luxuries
  • To achieve your target, plan to both increase your income and decrease your expenses
  • Allow for glitches along the way – some months you’ll have unexpected expenses that eat into your savings, so you need to plan to overachieve your targets in other months
  • Invest the savings appropriately in a high-interest savings account, preferably one that is difficult to access in times of mental weakness at the shops
Here are a few ideas to increase your income and decrease your expenses.