Tuesday 19th October 2021
Many young Australians spend much of their early adulthood slowly growing in their careers and building up savings, to the point where they can eventually afford a down payment on a home. For young people who don’t have high-paying jobs or much money in savings, buying a house isn’t realistic, so they have to settle for getting there slowly.
Sometimes, though, slowly isn’t good enough. What if you’re ready to start a family now, and the clock is ticking on getting everyone into a home where they’ll fit? In that situation, you’ve got to get a bit more aggressive. The question then becomes: How can you save faster?
Saving more, accumulating more
If you don’t think you’re financially ready to buy a house, you might need to step up your game as far as saving money and accumulating a nest egg to buy with. According to the Australian Securities and Investments Commission, this begins with cutting down on extra expenses. If you put off things like eating meals out and taking extravagant vacations for long enough, the savings will add up.
Furthermore, with the money you do save, you can accumulate more by either investing it or putting it in a high-interest savings account. Either of these strategies is preferable to simply making cash and turning it over quickly.
What about your other obligations?
Of course, it’s rare that buying a house is the only financial obligation you have to deal with. More often than not, you have other money-related responsibilities, such as paying off credit cards or eliminating student loan debt, that you have to worry about before focusing on putting money down and making mortgage repayments.
Conventional wisdom says to hold off on paying your other debts, saving for a home instead, but that’s not usually the best strategy. Instead, try to have a balanced approach to paying off as many debts as possible. This will keep you from accumulating interest, which will keep your wealth more intact long-term.
Soak up wisdom from the experts
Ask around and speak to those who have been in your position – your parents, coworkers, friends or even online chat groups. There is a wealth of knowledge out there, but you’ll need to do your research. Whatever it is you’re looking to learn, we can also be of assistance.
Contact us today for more information.