Save For Your Deposit Faster
SM Property

February 28, 2023

If you’re looking to buy a property, saving for a deposit is one of the most important steps in the process. However, saving for a property deposit can be a challenging task, especially if you’re on a tight budget or have other financial commitments. But don’t worry, because we’re here to give you ways to save faster. In this blog post, we will discuss some of the most effective strategies to help you achieve your savings goals.

Set a Budget

The first step in saving for your property deposit is to set a budget. You need to know exactly how much money you have coming in and going out each month. Look at your expenses and identify areas where you can cut back. For example, you might be able to reduce your dining out expenses or subscription services. Make a plan and stick to it. Remember, every dollar you save will bring you one step closer to your goal.

Open a Separate Savings Account

It’s important to have a separate savings account for your property deposit. This will help you to keep your savings separate from your everyday spending money, and you’ll be less likely to dip into your savings for non-essential expenses. Look for a savings account that offers a competitive interest rate and no fees. You may also want to consider an account that restricts access to your funds, as this can help you stay on track with your savings goals.

Automate your Savings

Automating your savings is an effective way to save for a property deposit faster. You can set up an automatic transfer from your checking account to your savings account each month. This way, you won’t have to remember to make the transfer yourself, and you’ll be less likely to spend the money before you can save it. Even a small amount of money saved each month can add up over time.

Reduce your Debt

Reducing your debt can help you save for a property deposit faster. Debt can eat into your savings, as you’ll be paying interest on the money you owe. Look for ways to reduce your debt, such as consolidating high-interest debts or negotiating lower interest rates with your creditors. Also make sure to look out for unnecessary debts, such as After Pay or overdraft on your bank account.

Increase your Income

Increasing your income can help you save for a property deposit faster. Look for ways to boost your income, such as taking on a side job or freelancing. You could consider pursuing further education or training to qualify for a higher-paying job. This can be challenging for someone with a busy life but every dollar counts.

Consider Government Assistance

In New Zealand, the government offers several assistance options to first home buyers. These can include the First Home Grant or the Kainga Ora First Home Partner Scheme. These programs can provide grants or co-ownership to assist with the deposit or purchase of a first home. It’s worth researching what government assistance options are available in your area and determining if you qualify. Chat to the SM Property team today and we can help you see what options you have in the way of government assistance.

In conclusion, saving for a property deposit is a challenge, but it’s an achievable goal with the right strategies. Set a budget, open a separate savings account, automate your savings, start reducing any debt you have, increase your income, and look into different government assistance options. By following these tips, you’ll be well on your way to achieving your dream of homeownership. Make sure to visit our Instagram, or head to our other blogs for more first home buying tips!

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