5 Easy Habits of Mind

What do you think of when you think about saving money? It’s hard isn’t it…

But, what if the way you think about saving could make it easier?

As part of our ongoing series on getting prepped for your first home purchase, here are 5 easy habits of mind to help make saving breezy.

1. Think: a dollar saved is better than a dollar earned

What’s the easiest way to have more money? The answer itself is easier than you might think. Spend less!

If you want to see one more dollar than usual in your bank account, you have two options. 1) Don’t spend a dollar that you usually would, or 2) earn an extra dollar. It’s the same thing right?

Not really! Not only do you have to find a way to earn that extra dollar, and go and earn it, you’ll also need to earn about $1.25 in order to bank $1, after tax (based on a ~20% tax rate).

So, think about spending less! It’s easier.

2. Think about what’s important to you

Each time you spend $26 on a sassy cocktail, or $12 on a pair of fun socks with sausage dogs printed on them, you’re $26 or $12 further away from achieving the deposit for your first home…

Yes, enjoying your life is important. So of course you’re going to spend money on things that make you happy.

Each time you’re faced with the decision though, try to ask yourself which one is more important to your bigger picture… Fun socks? First home? Fun socks? First home? First home.

You might find yourself curbing your discretionary spending.

3. Consider your outgoings

Your bank account is a bucket filled with holes. Out flows your money.

Where is it going? What are the biggest holes? What are all those little ones?

Think about how you can minimize the big ones, and plug some of the small ones completely.

How can you spend less on nights out? What online subscriptions do you just not use?

4. Stop flirting with credit

Do high credit limits make you feel like you’re on top of the world? Do you feel like you could buy just about anything? It’s nice isn’t it.

But, it costs money to have that money, which you’ll need to give back anyway. So really, it hurts twice.

Make it a priority in your mind to pay down your credit. Reduce your limits or even get rid of them. Feel the inner levity of owning your own money.

5. Don’t think, automate

There are ways to save that are so easy you don’t even need to think about it.

Is Thursday pay day? Set up an auto-payment on Friday to your savings account. Voila.

Are you already all over these points? That’s great!

Whether you’ve already mastered these habits, or are about to, the next step is to lay a plan for your savings and deposit building to move forward with your property search.

Our team is here to help you master your finances with simple, down to earth guidance and advice.

Book your free appointment today to discuss your goals and how to get there sooner. 

Next instalment: 4 Signs Now Might be the Time to Look for Your First Home

Disclaimer: This communication has been prepared on a general advice basis only. The information has not been prepared to take into account your specific objectives, needs and financial situation. The information may not be appropriate to your individual needs and you should seek advice from your financial adviser before making any investment decisions.