Easy ways to build on your daily habits to save for a home
WITH ME Bank research showing one in 10 Australians is saving to buy a home, it could be time for a fresh approach.
Weaving healthy money habits into a daily routine can be the key to growing a first home deposit sooner.
Research by psychologists confirms using a non-financial cue to check the balance of your everyday account can lead to the two actions going hand in hand.
Let's take a closer look at how current habits can be used to launch some clever new financial habits to get into your first home sooner.
Travelling to work
If you travel by train, tram or bus, use your daily commute as a cue to review your budget. ME research shows only one in two Gen Y Australians (aged 18- 34) follow a budget. Yet it is a critical first step that lets you juggle expenses, pay regular bills on time and still have money for savings.
Grabbing some lunch
Use the opportunity to transfer money into your savings account. Give your savings a boost while refuelling your energy levels. Making regular deposits, no matter how small, goes a long way to growing first-home savings. And be sure to use a dedicated savings account. About 14% of Gen Ys accumulate savings in an everyday account, meaning they may be missing out on valuable interest income.
Review the day's spending - only two out of five people keep a written record of their expenses. This simple step develops a more accurate picture of your spending patterns and highlights areas where you can cut back.
Tuning into TV
Use the opportunity to monitor your savings and your savings account to be sure your money is earning a competitive rate. Plenty of savings accounts offer an enticing introductory rate, but skip the hassle of shifting money around from one account to another by choosing a bank that offers a consistently good rate.
Start with these four steps to growing your first home deposit to reach your goal sooner.
- Nic Emery is head of deposits and transactional banking at ME Bank