Smash your first home savings goals with these simple tips

Struggling to save up a deposit for your first pad? Or maybe you’ve got some dollars together already but you’re keen to boost your savings to build something bigger? As a firie or emergency service worker, it can sometimes be easy to get so caught up in helping other people that you can forget to put your own financial goals in motion.

Never fear - we’re here to help with some simple first home savings tips to help you smash your savings goals and buy your first home sooner than you think.

Disclaimer: The information contained in this article is of a general nature only and should not be taken as financial or legal advice on any of the topics discussed. Always consult a financial adviser before making any investment decisions.

Start a separate home deposit savings account 

When you have the one savings account to park any extra funds that come your way, it can be hard to keep track of your savings and way too easy to dip into them for cashflow, bills or other spending. When it comes to keeping your savings on track, setting up a separate account that’s only for your home deposit savings, is a great first step.

Look for a savings account that offers a competitive interest rate and one that won’t slug you with account fees that could chew into your deposit either. Keep an eye out for accounts that reward you for saving more, like our Reward Saver Account that pays you bonus interest when you save at least $50 each month and don’t make any withdrawals. Sweet!

Set up a solid savings plan 

Creating a solid savings plan to put aside a set amount of money on a regular basis is the best way to smash your savings goals sooner. Start with your savings goal  - how much you need for your deposit (about 20% of a property’s purchase price) - and work backwards from there to find out how much you need to put away each week or month. 

Have you checked out our savings planner? It’s an awesome online tool that can help you see what your savings balance could look like in a matter of months and years when you make regular deposits. 

Set and forget with automatic savings

Now you’ve got a solid savings plan, it’s time to put it into action. Setting up an automatic recurring transfer from your everyday account to your home deposit savings account is a great (and super easy) way to make that happen.

Once you’ve set up a recurring transfer, the set amount of money you choose will be transferred automatically to your savings account each week or month so you won’t be tempted to spend it on other things. Just set up once and you’ll be chasing down your savings goals like a champion, without even trying.

Pro-tip: Set up your recurring savings to come out after your regular pay hits your account. That way you’ll know the funds will be there.

Spend less to save more

Supercharging your first home deposit can be as simple as finding more ways to cut back on spending. Paying a bundle on rent? Could you downsize or live somewhere cheaper or further afield? Could you cut back on nights out or those weekends away if it meant buying your first home sooner? Check for unnecessary spending like Netflix or Spotify subscriptions or gym memberships you don’t use. Hey Uber Eats? Could you limit it to once per week? You’ll be blown away by how much more you can save when you take a good, hard look at your spending with a ‘that could be my home deposit’ mind-set.

Do your homework to save on your home loan

Every home loan is different so it can really pay to do your homework while you’re building up your deposit. Different lenders and home loan products offer a range of different interest rates, terms and conditions, fees and charges as well as special offers and discounts. For example, our Your Way Plus home loan rewards essential workers with special low rates and benefits.