Are you aware of the best way to save for your first home?
Let's look at how you can set up your accounts to make it easier to save for a deposit for your first home.
You should already have your income coming into one account, and setting up a number of other accounts can make it easier for you to save towards your first home.
Account #1
We suggest that you use this first account for all your bills and fixed expenses. You don’t need a debit card or access to this account because everything coming out of it will be set up online as a direct debit or paid via BPAY.
Account #2
This account is for weekly spending. You will need to set up a weekly transfer for how much you need for everyday expenses that you do use a card for. Such as groceries, eating out day to day, travel, expenses that fluctuate and that you’re using your card to tap and go.
Account #3
Working backwards from your deposit amount, set up another weekly transfer going into a separate savings account that can build on for your house deposit.
How do you get these numbers to match up and how do you work out exactly how much per week is going into account one, account two, and account three?
The easiest way to do this is by completing a budget. You can find a really great budgeting tool at moneysmart.gov.au. Once you complete that, it will help you determine how much needs to go into each account. Use account two to monitor your spending to see how much you have leftover for savings, or where you can make budget cuts. For example, if you notice that you are spending a lot more than you thought on food delivery you could work on reducing this to increase your savings.
Happy savings.
