Tips for saving a deposit for your home

Saving enough money to buy a home can be hard. Follow the five steps below to help make it happen.

10:04 04 June 2013

Deposit - this is the first thing that you need to prepare for when buying a home. Ideally, you would want to make a huge deposit so you’ll be faced with lower monthly fees and shorter payment terms. 

 

Below are the steps to save for the deposit faster: 

 

• Get a clear picture of your financial standing. The first thing that you need to do is check your finances. How much are you earning?

 

How much can you set aside every month to start saving for your deposit?

 

If the figures don’t give you the number that you’re looking for, look for expenses that you can eliminate. For example, you may need to minimise the number of times you go on a holiday abroad or you may want to stop smoking to save money. 

 

• Clear your debt. Keep in mind that this endeavor doesn’t stop after you made the deposit. After that, you’ll be faced with regular monthly payments. You don’t want to be paying other debts with this.

 

So, clear as much of your debts as possible. Start with those ones that have higher interest rates. 

 

• Look for the best savings accounts. While you’re saving for a deposit, put your money into the best savings account that offers the highest interest rate.

 

You can also invest in short-term bonds. However, ensure that all your investments are very safe as you wouldn’t want to lose money when you’re saving for your house.