Updated: Aug 28, 2020
Save for your dream home without giving up your lifestyle.
We’ve all heard the jokes about avocado toast derailing all your chances of ever owning your dream home. Of course, cutting back on frivolous spending will have a positive impact on your bank balance, but you can still save hard without giving up on the things you love. Today we’ll explore a few ways you can keep those savings piling up without the FOMO (fear of missing out).
Decrease your regular expenses If you’re finding it hard to cut down on the fun stuff, start by paying less for the boring bits – bills! When it comes to things like phones, electricity and car insurance, it rarely pays to be loyal to one provider. Always shop around every 6-12 months to see if you can find better deals by switching and get those regular expenses down as low as possible.
Start a side-hustle Naturally, if the thought of giving up Sunday brunch altogether is a little hard to swallow, then it makes sense to secure an additional income stream that can go straight into your savings. It could be through freelancing, taking on a weekend job, renting out the spare room or making a small investment that generates passive income for you.
Make swaps not sacrifices Yes, eating out can really eat up your earnings, but if it’s a central part of your social life, you don’t have to say ‘no’ to every gathering. There are plenty of ways to save on food or drinks without locking yourself in your bedroom every weekend. Keep your eyes peeled for special offers at local restaurants or better yet, offer to host dinner at your place. Ask your friends to each bring something along and you’ll not only save on food but you can avoid having to pay for a ride home too!
Consolidate personal debts Do you have a few personal loans or credit cards floating around? It’s worth looking into consolidation to combine all of these debts into one loan, ideally with a lower interest rate. Not only will you save on interest costs but it’s much easier to manage to pay off as quickly as possible.
Travel together Sure, travel can be expensive, but it doesn’t have to be. If you’re a true travel bug and need to get away now and again, gather a group of friends to go with. Travelling in groups is by far the most economical way to pay for accommodation, travel insurance and car hire when you can split the cost between everyone. The beauty of Australia is you can find some amazing destinations without even needing to go overseas. Keep an eye out for deals on domestic flights, but remember you need to be willing to book fast to get the hottest deals. If travel is a priority for you, be sure to have money set aside for spontaneous trips so you aren’t tempted to dig into savings or use a credit card.
Investigate building If saving to buy your dream home is taking a lot of willpower, you’d probably think building your dream home is way out of the question – but the math may surprise you. If living in the thick of a major city isn’t a priority for you, land and home packages in the outer suburbs or regional areas can be very affordable. If you do choose to go down this route, you should still think of what you’re spending as an investment, so consider what the home you build will be worth in years to come and spend accordingly.
Buy groceries online Doing your weekly food shop online can seriously help reduce your chances of picking up impulse buys, shopping while hungry or missing out on the best prices. Sort products by price to help spot the best value items that would normally be hiding on the lower shelves and do a final comb through your virtual cart before completing your purchase to make sure you’re only getting what you really need. The best part? You can easily track what you’re spending throughout so there are no surprises at the end!
We hope these ideas help you save up for your dream home (and have fun while doing it).