5 Smart Saving Strategies to Help You Fast-Track Your Property Deposit

InvestHer 5 Smart Saving Strategies to Help You Fast-Track Your Property Deposit

Let’s be honest, saving money isn’t easy for everybody.  

For some people, it comes so naturally, but if you’ve ever felt overwhelmed or defeated throughout the process – especially if you’re saving for something daunting like a property deposit, just know that you’re not alone. 

Property prices are rising and for a lot of people the pressure is on to scrape together a pretty substantial amount of money just to get their foot in the door. It’s normal to feel like it’s a never-ending process, and one that you just can’t seem to get right. 

But sometimes all you need are some tips and tricks and a confidence boost to get you set in the right direction. So, we’re here to break down 5 savings strategies to get you well on the way to your goals. 

  1. Set clear, realistic goals
    We know you’ve heard it all before – SMART goals are the BEST. 

    But truly one of the keys to feeling less overwhelmed throughout this whole process is knowing exactly what you’re working towards so you can break it down into smaller, bite-sized pieces. Start with a clear, realistic figure for your deposit – depending on your circumstances that might be 20%, 10% or even 5%, or anywhere in between, and it’s something we at InvestHer can help you navigate.  

    From there, you can break this down into weekly and monthly savings targets, which feel much more manageable. This way, you can keep track of your progress and tweak your strategy if you need. Setting clear goals also gives you a sense of direction and purpose, because we all need a little something to keep us motivated throughout a process like this. 

  2. Create a budget that you’ll actually stick to
    Budgeting is one of the most powerful ways to make sure you’re staying on track.  

     If you’ve got one that is well-structured and feels realistic to you and your lifestyle, it’s going to be a whole lot easier to track exactly what’s coming in and going out, and it means you’ll be able to identify areas where you have a bit of wriggle room to cut back and fast-track your savings goals.

    Start by tracking all of your expenses – whether it’s rent, groceries or your daily soy latte, and categorise them to see exactly where your money is going. Then, you can start to prioritise the goal you’ve set and allocate a portion of your income towards your deposit each month. We’re not saying you have to give up everything you enjoy doing, but if you can manage sticking to a disciplined budget and avoid all of that unnecessary spending, you’ll be one step closer to that property investment you’re dreaming of. 

  3. Automate your savings
    One of the easiest ways to make sure you’re consistently saving is to set up an automated transfer to your savings account. This will remove the temptation to spend the money you’re meant to be setting aside on Uber Eats or that nice top you walked past at the shops. When you treat your savings like a fixed expense – just like paying rent or your utility bills, it feels much less like you’re missing out on something in the short-term, and so much more like you’re prioritising what you want in the long-term.

    Make sure the transfer is set up to align with your payday so that you’re consistently putting money towards your deposit each week or month. It’s going to take the thinking and discipline out of the process, making saving easier and more consistent. Even if you start small, the key is to make it a habit. Over time, these automated savings will add up, and you’ll be amazed at how much money you can save without even thinking about it. 

  4. Think about creating additional sources of income
    If you think about it logically, increasing your income is one of the most effective ways to speed up your savings (or give you a little wriggle room for your spending on the side). Most of us rely solely on our full-time jobs to bring the money in, but there are a ton of other ways to bring in some extra cash to boost your savings. 

    You may consider side gigs like freelance work, tutoring, or selling things you don’t use anymore online. If you have a skill or hobby you can monetise — like photography, graphic design, or writing, there’s plenty of places online where this is possible. Maybe even pet-sitting or house-sitting sounds more up your alley. Whatever it is, even small amounts of extra income can add up over time. 

  5. Look around for high interest savings accounts or investments
    If you want your deposit fund to grow faster without having to do ANY extra work, you may want to consider putting your money in a high-interest savings account. The returns probably won’t be anything mind-blowing, but often you’ll get a better rate than just a standard savings account, and over time this will help your savings grow. 

    If you’re open to something a little riskier, investment options like ETFs or managed funds are an option too. With these you’ll likely get higher returns over time, but there is a higher degree of risk so you need to make sure you’re choosing the option that makes the most sense to you, and one that you’re comfortable with. 

     

Bonus Tip: Use government schemes to your advantage
It’s worth keeping an eye on any government schemes or grants that may be able to help you save for your deposit faster. Depending on which state you live in, you may qualify for first-time homebuyer grants or stamp duty exemptions. Some states even offer specific savings schemes for first-home buyers, where the government may match a portion of your savings – which can be super helpful when the deposit figure feels daunting. 

Make sure you research what’s available in your area and see if you can take advantage of any of these opportunities to reduce the amount you need to save, and we’re always here to help you explore these options and offer advice depending on your circumstances. 

 

So, while it may seem like a ongoing process of overwhelm and sacrifice, saving for a property deposit doesn’t have to be an impossible task, we promise. By setting clear goals, sticking to a budget, automating your savings, finding additional income sources, and making your money work harder, you can fast-track your savings and be on your way to property ownership far sooner than you think. You just need to be willing to commit. 

The more disciplined and focused you are with your savings, the sooner you’ll be able to reach your property goals, and there’s so much excitement in store for you once your foot is in the door. 

Need some advice or looking for guidance on the next steps after saving for your deposit? Let’s chat – we’re here to help you along your property investment journey, no matter what stage you’re at.