“I always knew people were beautiful, but it’s only in the last few months that…
So it’s 2020.
While technology has certainly come a long way, and most of us do seem to be controlled by a small rectangular device, the floating cars and living in Jetsons-esque houses in the sky with robot maids seems like it’s probably a long way off.
So until then, we’ve still got our regular houses, and unfortunately they’re just as expensive as ever to buy.
But while a personal hoverboard probably isn’t within your grasp this year, home ownership could be (or you could at least be well on your way towards it).
The thought of saving a house deposit can feel like an insurmountable goal, particularly when people start talking about giving up coffees and avocados.
But if you want to get ahead, financial advisor Katherine Spitzkowsky from Green Associates in Deakin says it really comes down to being focussed on your goals, empowered in your spending, and knowing where your money’s going.
It may not be rocket science, but creating a budget can be more powerful than you think.
“If you sit down and look at your money and start tracking your spending, you might realise you spend $600 a month at a particular restaurant. And it’s really about understanding what opportunity you’re forgoing by spending that,” says Katherine.
“Once you know where your money is going, it gives you the power to either continue doing that, or perhaps deciding you only want to spend $300 a month at that restaurant and put the other $300 into savings. And even just that extra amount can really boost your savings.”
And her biggest advice is that once you start building your savings, make sure it’s sitting somewhere you don’t see often. Out of sight, out of mind.
“I always recommend separating your savings from your spending. Make sure you’re paying yourself first, and transfer your savings into another account so that you’re not tempted to spend it,” she says.
“Because if you see your money building up, your motivation can plateau and the temptation to spend it and chip away at it as it increases.”
While the current low-interest rates are a good thing once you take on a mortgage, they’re not good news for when you’re trying to grow your savings through a high-interest savings account. Katherine says now more than ever it pays to shop around.
“An easy way to keep an eye out is regularly check comparison websites. They do regular updates on which banks have got the best interest rate,” says Katherine.
“There shouldn’t be a thing such as loyalty to banks anymore. There’s no need for it from the consumer’s perspective and it’s up to the bank to prove they are a good fit for you. It’s not hard to change banks or accounts these days so just do it, get out there. If you can play that game you can get the best rate.”
Saving for your first home? There is some better news, with a couple of government schemes available to help you buy a home sooner.
The First Home Super Saver Scheme lets you save money for your first home inside your super fund. This means you can save faster thanks to the tax concessions on superannuation. The money is held in your super account and you can only access it once you buy a property.
“It’s essentially salary sacrificing some of your pay into your super, which means you get tax benefits on both the income you earn, and you get concessional tax treatment on the amount that’s held inside super. It’s also a good means of saving as you can’t easily access the money,” says Katherine.
“This scheme isn’t for everybody, so you should speak to an expert about your individual circumstances. But it can be a great option for first home buyers.”
The First Home Loan Deposit Scheme is another option which allows eligible first home buyers to purchase a home with a deposit of as little as 5 per cent, without the need to pay mortgage lender’s insurance.
Want personal advice on how you can save for your own home? Talk to one of the talented financial advisors at Green Associates.
What: Green Associates
Where: 3/10 Geils Circuit, Deakin
This editorial was created in partnership with Green Associates. For more information on sponsored partnerships, click here.