Five Ways to Save for a Home Loan

• 5 WAYS TO • TO SAVE FOR YOUR FIRST HOME LOAN 1 Start a savings plan Make a list of all your essential living expenses and ask yourself, "How much can I afford to save each month from my salary?" Then set up a direct debit for that amount to go into a dedicated savings account every pay day. This way, you will not be tempted to skip or reduce the contributions. SALARY r EXPENDITURE - SAVING DIRECT DEBIT DIRECT DEBIT DEDICATED SAVINGS ACCOUNT 2 Limit excess spending Think about ways you can cut your everyday costs to contribute even more to your savings for that first home loan. You might need to only make a few small changes, such as limiting nights out at bars and restaurants to once or twice a week, or making your own coffees and lunches instead of buying them. HOME COOKED 3 Increase your income Having a money-earning project on the side of your full-time job can also boost your savings faster. You could sign up to test products at a market research company, start a freelance writing or graphic design business if you're a creative type, or even sell clothing and goods you don't use anymore on eBay. ebay SELL FREELANCE FREELANCE RESEARCH & YOUR DESIGNING WRITING EXTRA ITEMS SOLD 4 Make your money work for you Put your savings in a high interest account to make your deposit accumulate faster. You could also consider using a term deposit, as they often have higher interest rates than regular savings accounts, and restrict access to your money for a set period of time, making it less tempting to pull funds out of your savings. HIGH INTEREST TERM DEPOSIT ACCOUNT 5 Pay down your credit card Paying down credit card debts is another key way to minimise your costs and maximise your savings for your first home loan. Not only will you reduce the amount of interest you're paying, you'll also improve your credit rating and your chance of getting your home loan application approved. OLOANS CREDIT RATING V INTERSEST