Prioritising and being honest with yourself are just two methods to get on top of your spending and save for that first home deposit.
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One full-time worker in Wagga recently purchased her first home and demonstrated that saving while renting, is entirely possible.
Hayley Wheaton has been renting since she moved out of her family's home at the age of 18.
Now 33 years old, Ms Wheaton decided in May 2018 that it was time to start paying off her own mortgage rather than someone else's.
"I didn't spend my tax returns," she said.
"I claimed the tax-free threshold and so, basically, I got taxed the full rate on each of my jobs which was a savings measure."
Ms Wheaton admitted that at one point she held up to five causal jobs and was receiving Centrelink payments.
"I've completed a university degree, TAFE qualifications ... I've only had a full-time job for a total of four years," she said.
"I'm in a stable space now where I could have a mortgage.
"I think that anyone can do it, it was a choice ... to buy a house."
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Ms Wheaton is now working with the state government in community services and said it was important for her to not go without anything while saving for her deposit.
"My priorities are travel, saving and good food," she said.
"That's where I was honest with myself, because I didn't want to save for a house and go without so I still went out for coffee and ate dinner with friends.
"However, there were things I didn't find as a priority ... I didn't buy new furniture or need the latest phone and I also never had a credit card because if you can't afford it, don't buy it."
Ms Wheaton moved into her Gobbagombalin property in April and chose a smaller, energy efficient designed home as a long term investment.
The Australian Securities and Investments Commission's Money Smart has identified three additional techniques that focus on helping young people cut down on their spending and maximise their savings.
1. Cut back on the extras
Budgeting is key to identify essential costs such as rent, bills and food and then subtract this amount from income and what is left over could go towards saving for the deposit.
2. Move back into the family home
While it may not seem that appealing, many young people choose to move back into the family home while they are saving for their first house.
Rent is likely to be one of the biggest expenses, therefore if it can be cut down or reduced that can increase savings quickly.
3. Get a high interest savings account
Money Smart says it's all about making money that works for each person.
Leaving savings in an everyday transaction account can be tempting to use the cash and will likely mean that less interest is earned as opposed to transferring the savings to a high-interest savings account.
Other Smart Money tips include:
- Change one thing you do regularly such as giving up coffee or alcohol or setting up a limit for presents.
- Save on clothes - choose op-shops or local markets for bargains
- Cut the grocery bill by meal planning, don't bring the children, and buy generic products where possible.
- Save on utilities by turning off power-points when they are not in use and using a hot water bottle instead of an electricity blanket.
- Find cheap ways to get fit, like going for walks at the local park than spending money on a gym membership.
How are you saving for a house deposit? Leave your tips in the comment section.
