How to budget for buying a new home as a DINK couple

So, you’re in a DINK relationship (that’s double income, no kids for the uninitiated). This is a great phase of your life, where you have the money to do whatever you choose, and the freedom to do it.

Apart from work, there’s nothing tying you down. You can spend late nights on the town drinking $15 cocktails followed by a fancy brunch the next day, before a spot of boutique shopping on the way back to your trendy inner-city pad.

It’s an enviable lifestyle, and if you intend to have children this is the time to enjoy yourself. But it’s also an important time financially, as this is when you can really set yourself up for life.

The reality is that this might be as good as it gets money-wise. If children come along, your financial responsibilities will multiply and your income could halve. Instead of planning your next overseas adventure you’ll be shopping for specials on essentials, especially if you haven’t prepared for the next period of your life.

Even if you don’t want kids, now is the time to be knuckling down financially so you can afford to live where you love and don’t have to work forever.

Since you may never again have the spare cash that you have now, put it to good use – and buying a home is a great start. At least it will appreciate in value unlike most of your other purchases.

But to buy a home you need savings, and to put it bluntly, to save you need to rein in your spending. Now is the time to reassess every purchase you make.

Research from Mozo found Australians fritter away around 75 per cent of their discretionary income on eating and drinking out, and fashion. So that’s two areas where you can cut back.

Next time you go shopping, stop and ask yourself “Do I need this?”. Exercising restraint could save you hundreds each month.

And how about staying home one night each week rather than eating out? You’ll save around $50 each week, or $2600 a year. Buy a $5 cleanskin bottle of wine rather than a $20 brand (trust me, you won’t be able to tell the difference!) and that’s another $780.

Instead of rushing out to upgrade your phone as soon as your plan ends, keep it and go on pre-paid. That’s $20-plus per month in the bank. 

If you want to make bigger cutbacks you could rent a smaller home further from the city, which will also help you cut back on expensive nights out on the town. These savings could run into the thousands per month.

Cooking dinner at home can be a great bonding experience, and you’d be surprised how much you’ll save by cutting down on eating out.
Photo: Dmytro Gilitukha

While you have the ability to enjoy life’s little luxuries, it doesn’t mean you should overindulge. Luxuries are luxuries because we’re not supposed to have them all the time, and you can still live a great life by going without sometimes.

To save the tens of thousands you’ll require for a deposit you’ll need to become more acutely aware of your finances – check your accounts at least once a day to keep track of your spending.

On your income you could conceivably save one whole wage – yes, that’s right, you’d be surprised at what is possible – and this would be a good practice for when/if children come along.

Once you have money put aside, don’t dip into it, except in emergencies. And wanting to buy the latest iPad, Xbox or designer dress does not qualify as an emergency!