Tips for Saving a House Deposit

Set a goal and a timeframe. Start by finding out how much you'll need for a house deposit, then work backwards to determine how long it will take. Set a date to achieve the goal. For example, if I save 20k a year, I'll reach my goal in 3 years on March 3rd.

See a mortgage broker for advice and direction regarding how much you need for a deposit and getting a home loan.

If the goal is overwhelming, break it into small goals, for example, weekly or quarterly saving goals.

Name your savings accounts, have an account called house deposit for the sole purpose of saving for your first home. Keep it separate from your emergency fund and spending account.

Use the power of manifestation. Ask yourself if anything is possible, what would I want to achieve? Then use the answers to create a vision board. Importantly, make sure buying a house is something you want because if your goals don't align with your values, you are less likely to take action. You can even add objects, such as an uncut house key, to remind yourself of your goal.

Act like you will achieve your goal. Research the home buying process, learn what grants and concessions are available, and about the different neighbourhoods to get yourself mentally prepared.

Gamify your savings, set yourself a reward when hitting a milestone.

Make it easier to follow through on good saving habits, for example, meal prep the night before and set up auto-transfers to your savings account.

Add friction to make it harder to create bad habits, for example, unsubscribing from brand emails or having a savings account with a different bank. In addition, have a set amount in your spending account each month. Once you have spent it all, you'll be transferring money from savings, and you'll know you've used up your monthly spending allocation.

Recommended reading: Atomic Habits by James Clear.

Find ways to boost your savings, for example decluttering and selling unwanted items on Gumtree. The government offers the First Home Super Saver Scheme (FHSSS) by helping individuals save their house deposits inside their super fund and allows them to take advantage of the tax treatment of concessional contributions.

Get intentional, decide what is worth spending and saving on. Know exactly what you are willing to sacrifice to reach your savings goal because saving isn't easy.

Review bank transactions. If you know where your money is going, you'll find new ways to save it.