Top tips to help you save for your home deposit

2. Track your spending

Once you have a clear idea of exactly how much you can afford and how much you need to save, it’s time to perform a stocktake of your expenses. Make a list of your monthly expenses – from rent, utility bills and car insurance, to app subscriptions, groceries, and takeaway coffees.

‘People often underestimate the amount of money they spend on eating out or on entertainment,’ says Sunny, who suggests tracking your expenses for a couple of months to get a concrete idea of where your cash is going.

Boutique clients may also qualify for the My Home Plan through Resolve Finance, which offers free financial coaching, an associated app to track your expenses, and a personalised savings plan.

‘If there are certain expenses that would be unrealistic to cut entirely then set a weekly or monthly limit and reduce that figure over time,’ suggests Sunny.

4. Renegotiate your direct debits and services

Services such as your mobile and internet plan, utilities such as power and water, and car and health insurance are all part of a saturated market. Use this to your advantage by seeking out a better, less expensive deal or renegotiating with your current provider for an easy saving each month.

While you’re at it, take stock of any subscription services that aren’t offering up value for money. Do you need Amazon Prime, Netflix and Stan, or will one entertainment platform do?

‘Remember, every saved dollar is money you could be putting towards your dream of home ownership,’ says Sunny.

6. Move your money into a high-interest savings account

It’s important to maximise the potential of the money you are working so hard to save. Do your research and find a bank with a higher interest rate and lower fees.

It might also be worth setting up a direct debit from your everyday account to your savings account each month to make the process automatic. This can be a dollar amount or a percentage of your income, aligned with your payday. Either way, it’s important the amount you’re saving is sustainable.

‘The true value of a savings account is in the compound interest, so try withdrawing from it only in emergencies. Set a savings goal and try it out for a couple of months before trying to increase the amount you save,’ says Sunny.

And with interest rates at an all time low, now is the opportune time to capitalise on the savings.

8. Cut down on fuel and car maintenance costs

Fuel can be a huge weekly expense, particularly if you own a large car and have a significant commute.

‘Think about public transport options, carpool with colleagues, or try walking or riding your bike,’ says Sunny.

‘Even if it’s just a few times per week, you’ll be amazed at the significant savings that can go directly to your dream home. Plus, you’ll be doing your bit for the environment.’