Saving for a house deposit in this cost of living crisis can feel like quite the impossible endeavour. However, it is still possible to do. Saving for a house deposit requires some discipline, and a thoughtfully considered strategy. But it is an exciting journey that will lead you to, hopefully, ticking off a big part of your bucket list – becoming a homeowner.
To help you get started, we have put together our top 6 tips to help you save for a house deposit.
1. Increase KiwiSaver Contributions
Achieve your homeowner dreams by increasing your KiwiSaver contributions. Did you know that you can contribute more than 3% to your KiwiSaver? As an employee, you can contribute 4%, 6%, 8%, and even 10%. Check with your employer to see if they can match your chosen rate. This can be a great way to quickly grow your investment and help you get over that tricky hurdle of having enough for a deposit.
2. Compare Household Bills
One of the best ways to save money is to compare your household bills. When you compare, you empower yourself to make a fully informed choice, and it is more likely that you find yourself the best deal. Here at Money Compare, we have a range of comparison tools to help you compare a range of bills such as your insurances and personal loans. You can also compare home loans, when the time comes!
Our other brands, Broadband Compare, Power Compare, and Mobile Compare, allow you to compare your broadband, power, and mobile bills.
Comparing comes with a wide range of benefits—most importantly, saving money. By comparing and switching to a better deal on a regular basis, you can unlock savings that make a true difference to your budget, and allow you to put your hard earned money towards more important things such as your house deposit savings.
Our comparison platforms are free to use, bias-free, and hassle-free, so that you can find the best plans and providers for your unique needs.
3. Create a Budget
A budget is a great way to track your income and outgoings. Take the time to write down all your expenses, including rent, household bills, groceries, and subscriptions including streaming services and gym memberships.
Be sure to also track your spending for a few weeks. Are you spending money on things you don’t necessarily need such as large clothing hauls, or takeaway meals multiple times a week? Identify where you could make improvements and set yourself mini goals to help motivate yourself to make changes. For example, you could pull back takeaways to a once a week treat. Creating and maintaining a budget can be a great way to identify habits that you can improve on, and unlock money you can put towards your house deposit instead.
4. Refinance Debts and Loans
Secure yourself a better interest rate and lower your repayments by taking just a few minutes to refinance your debts and loans. With Money Compare, you can compare 30+ lenders with no impact on your credit score, all backed by the power of AI. Answer a few simple questions and we will help you compare all the options available to you to help you find a deal that makes a positive impact on your budget. It's that simple!
5. Cancel Subscriptions
It’s time to declutter your subscriptions. Go through all of them, including your streaming services, and cancel any that you don’t use, or just don’t use often enough. Be honest with yourself. Consider signing up to just the cheapest streaming service available, or only signing up to one at a time, depending on what TV show you are watching. Your bank account will thank you for the monthly savings!
6. Reduce Power Consumption
You can save a small, but significant amount of money each month by being conscious of your power consumption. There are quite a few simple ways to save power around the home, and ultimately reduce your power bill. You can swap old appliances for modern ones with a high energy star rating. Check the windows and doors in your home seal properly. Swap traditional lightbulbs for LEDs. These are just a few of the things you can do. To see some other power saving tips, click the button below!
Still Need Help?
Buying a home can be overwhelming, but it’s also an exciting challenge. If you are making moves to buy your first home, you should be so proud! Here at Money Compare, we have a range of resources to help you with the home buying process. You can compare home loans, and even seek free advice from a qualified mortgage advisor. Simply request a free call back by clicking the button below and a fully qualified mortgage advisor will be in touch with you!
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