Saving to buy a first home can be an intimidating concept.
But Sydney mother and financial advisor Canna Campbell, 35, has shared her top tips for those looking to save up and take the leap into home ownership.
Ms Campbell, the financial guru behind Sugar Mamma, has come up with five important steps to break down the process and make it as easy as possible.
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Taking the step: Financial advisor Canna Campbell, 35, has shared her top tips for those wanting to buy their first home
Five steps to success: Ms Campbell has come up with five steps to help make the process quick and simple
1. SEE YOUR BANK
Sometimes, the best way to get started is to seek advice and get some information from professionals.
'Make an appointment to see the local mortgage broker have a chat to them about what your financial goals are - explain to them where you stand financially and they can work out how much you can afford to borrow and what you can afford to buy,' Ms Campbell said.
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'The bank will give you the maximum amount you can afford to borrow but this isn't advisable because it's based on a 30-year term which means the amount of money they are potentially going to lend you is going to take 30 years to pay off.'
Ms Campbell recommends first home buyers don't borrow the maximum amount, avoid being a 'slave to their mortgage' and instead find other things to do with their 'hard earned cash'.
Get advice: Ms Campbell suggests seeing a broker and also advises people to not take out the maximum deposit, but instead find other ways to spend 'hard earned cash'
HOW CAN YOU SAVE FOR A HOUSE BEYOND MONTHLY SAVINGS?
- Baby sitting
- Dog walking
- Garage sale
- Selling things on eBay or Gumtree
- Working a weekend job
2. OPEN A SEPARATE SAVINGS ACCOUNT
Ms Campbell recommends those saving for a home open a bank account dedicated only to deposit savings.
'If possible I recommend nicknaming this "my deposit savings" as it helps make you feel you're turning your goals into a reality which is really important because it helps you build momentum and helps keep you focused.' Ms Campbell said.
Open a separate savings account: Ms Campbell advises potential first home buyers to open a separate savings account to save for a deposit, and suggests naming it "my deposit" to help with focus and momentum
3. DO A BUDGET
Budgets take time and can be confronting, but they are a crucial step to home ownership and sufficient savings.
'I know I bang on about budgets but I do so because they're really important,' Ms Campbell said.
'By doing a budget you can work out how much you can afford to save and how much you can increase your savings by.'
Budget! Though it can be tedious or confronting, Ms Campbell says making a budget is a crucial step
4. START SAVING
'This is the most exciting part of all as you can see your goals starting to happen,' Ms Campbell said.
'What I recommend is to set up an automatic direct debit plan so the money goes into your deposit account each month or each fortnight and you can see your deposit growing and getting bigger and bigger over time.'
Save! Ms Campbell says saving is the most exciting part as ' you can see your goals starting to happen'
Keep it auto: Ms Campbell recommends people have automatic deposits into their savings account as well as coming up with new and unique ways to make extra savings, through things like extra jobs and eBay listing
5. FIND, CREATE AND BUILD EXTRA SAVINGS
'I'm a super impatient person and I like things to happen right there and then - I'm not good at waiting,' Ms Campbell said.
Ms Campbell recommends putting in some 'good old fashioned hard work' to be able to create savings beyond monthly savings.
'Some of these ideas includeselling things on eBay, getting a weekend job, walking dogs, doing some baby sitting, having a garage sale, and/or selling things on gum tree,' she said.
'Save money create money manifest money.'
