5 Simple New Financial Year Resolutions for Home Buyers
Happy New Financial Year! If purchasing a new home is high on your wish list, it could be time to take steps to realise your dream. As it’s the beginning of the financial year, why not make some New Financial Years’ resolutions to help you reach your goal?
Set—and stick to—a practical budget
A budget is the simplest way to balance your expenses with your income to keep you out of debt. Your number one resolution should be to organise your household or personal budget.
Setting a budget doesn’t need to be a tedious task and allocating your income will certainly make you more aware of how and where you are spending your money. Get started by setting out your household income and expenses on a spreadsheet or use our simple online budget calculator. Don’t forget to allow for non-essential purchases—you may be able to cut back some of these, but if you cut out all your luxuries, you’ll be setting yourself up for failure. Overly strict budgeting can often backfire in the long run because it increases the chances of big spending splurges.
Start a savings plan
It’s always a good idea to put some of your earnings into a savings account, but even more so when you are looking at buying your first home. Most lenders will ask to see your most recent 3 bank statements showing regular deposits into your savings account.
Allow for savings in your budget and set up an automatic transfer from your everyday banking account into your savings account every fortnight or month, depending on when you get paid. It doesn’t have to be much at first. Keep saving a little at a time and you’ll be surprised how quickly it builds up.
Pay down your credit cards
According to the Australian Bureau of Statistics, household debt is on the rise. You can buck this trend by keeping track of your spending and putting aside a little cash every month to go on your credit cards or store cards. Another way to reduce your credit card bills is to change your account to one with a lower interest rate or no annual fee.
Review your bills
When is the last time you reviewed your mobile phone plan, insurance policy or electricity provider? If it’s been awhile, you could be paying too much for the service you’re receiving. There are a number of comparison sites you can use to look for a better deal, then call your service provider and see if they can match or better their competitors!
Cancel memberships you don’t need
The start of the new financial year is a great time to rethink your subscription memberships. You may have a gym membership, but if you’re not using it, do you need it? And what about pay TV, Audible, Kindle Unlimited or Spotify? Perhaps you could cancel one of them to reduce your monthly outgoings.
Once you start looking at your spending habits you might find other ways you can reduce your living expenses and, before you know it, you’ll be in a better position to purchase your new home.
If you’d like to discuss home loan options, call us on 134AFM and speak to one of our lending specialists or send us a message today.