Ah, you’re back! Ready to say goodbye to the rental, I presume? Guess what, it’s Savings time! Most banks require at least a 5% deposit when purchasing a home. So effectively, if your dream house costs $400k, you will need a deposit of at least $20k. On top of that, you will need further funds to cover any costs to go to settlement - something your friendly broker can discuss with you.

But first, let’s talk savings and how even on the smallest budget, you can find some spare cents.

And yes, this is in two parts! Did you think saving was going to be easy?

Tip One - Budgeting

I know... I mentioned the B word: the dreaded “budget”. While as time consuming  as some may find it, keeping a written tally of what you spend will keep any spending in check. Paper, phone, computer - however you choose - write it all down. Yes, even the expenses you don’t want to admit to. Even those bills that only come in every few months, break them down into a monthly expense.

You want no surprises!

Tip Two - Bank accounts

Have 3 of them. Bills, expenditures and savings. Of course don’t just have them, use them. And use them correctly and stick to your carefully laid out (WARNING: B-Word ahead) budget. By separating your money when you get it you will be less likely to over spend and will take tracking your income easier.

Three accounts may mean extra in banking fees, but there are many banks that offer fee-free accounts. Some even offer rewards for a savings account. Here is where you will have to do a little bit of homework. I know it’s a drag, but in the long run, the money you can save on fees is huge. Jump online or talk to friends to find the account that gives you the most for the least.

Tip Three - Eliminate 

Eliminate those debits coming out of your accounts that aren’t a necessity. 

Have a gym membership, and yet haven’t been inside the gym since you initially signed up? Get rid of it. 

Have every movie streaming service available, but are still stuck on the first season of Stranger Things? Get rid of some or all of them.

Have a “pickle of the month” mystery box subscription? For one, that is pretty cool, albeit a little odd. However, do you really need to eat a new type of pickle every month? Nope? Get rid of it.

We are but human, so when shown a bright shiny thing. we can often jump in with both feet and not think of the long-term running cost. Now that we want to save, however, it’s time to think of what is a “need” and what is a “want”.

Tip Four - Re-assess

Obviously, there are some debits that we can’t just stop such as insurance, Internet or the mobile phone contract. This doesn’t mean we can’t find some spare cash here and there. For example, if you’re not fixed into a extended contract, shop around. Don’t stick with what you know, hunt for what is cheap. More homework, I know, but trust me - a little bit of work now will make your savings account happy.

Now that I have left you with homework for the week, Part 2 will focus on the fun stuff: how to save money on your expenditures.