7 ways people save for home ownership

The dream of owning your own home may appear to be slipping out of your grasp. With grit and determination, however, saving enough for the deposit on a home is possible. Here are seven ways others have achieved their dream to inspire you towards your ultimate goal of a home of your own.

1. Set a weekly budget

Write down every cent you spend for a week. Then work out what you can live without. Skip that second takeaway coffee? A packed lunch in the park instead of lunch in a local cafe? Fewer visits to the hairdresser?

Figure out what these cutbacks will save you every week or month, and then calculate the savings over one year. The amount may surprise you and spur you on to make even more sacrifices to achieve your goal.

Visit the Australian Securities & Investments Commission’s MoneySmart website and use the TrackMySPEND and TrackMyGOALS apps to help you on your way. Also, look into government incentives that could help you.

2. Moonlight from home

Freelance-job sites, such as Fiverr and Elance, offer opportunities for earning extra money from home in your spare time, especially if you have IT skills; could act as a virtual assistant; or can write well on a topic you are knowledgeable about, such as health, finance, tech gadgets, beauty, cooking and parenting.

3. Get creative

If you are the creative type and full of ideas, get busy in the evenings and on weekends making things you can sell at your local markets or online. Look at sites such as Etsy or Pinterest for inspiration and nifty craft ideas. Bit of a MasterChef? Dig out your cookbooks and bake your favourite muffins, biscuits and cakes, then approach local cafes with free samples to try to encourage them to put in regular orders.

4. Get going with growing

If you have a green thumb, grow your own herbs and vegetables to save money. If you have the garden space – and take it seriously – you could even grow enough basil, tomatoes or rocket to sell to friends and colleagues or even to local cafes.

5. Move back to the family home

Moving back into your family’s home and paying board rather than renting elsewhere can allow you to save a serious amount of cash with your parents’ support and encouragement. Be sure to sit down for a roundtable discussion before making this move so that everyone can have their say on financial contributions and household responsibilities. Set clear guidelines to prevent any future friction.

6. Open a term-deposit account

Calculate how long it will take you to reach the amount you need for a home deposit and open a term-deposit bank account for that amount of time. It could be two or even four years in the future, but the compound interest will hasten the time necessary to reach your ultimate goal.

7. Take on extra work

Consider doing more overtime or taking on a second, part-time job. Could you tend bar or wait tables one or two nights a week? Maybe a local retailer could use an extra salesperson on Saturdays?

These are just a few ways you can reach your aim of home ownership. It may still seem a long way off, but with determination and a clear goal, you can do it. Just get started, and every week, you’ll see your savings grow, giving you the impetus and encouragement you need to keep up the hard work and see the light at the end of the tunnel glowing brighter and brighter.