Born in Wollongong and now living his adult life in Sydney, Ben is your classic first home buyer. 2 years ago, at the age of 25, Ben used his credit card for all sorts of purchases, then he would pay it down each pay cycle. At the pub he would buy an extra round for his mates or treat his partner to that special something they had always wanted. Whilst his credit card bill was always paid on time, using the plastic instead of a savings account meant that he wasn't as aware of where his money was going.
As Ben tried to save for a deposit, he became stretched for cash and during this time was tempted to turn towards his credit card for quick relief. By ditching the credit card, each purchase had to come out of his savings which made him think 'do I really need this' before making an impulse buy. To be effective, Ben would wait 30 days to decide if he wanted to make the purchase, and 9 times out of 10, after 30 days the purchase had lost its importance so he would leave the money in his savings account.
Avoiding these little (or big) buys could help you reach your savings goal even faster bringing the Aussie dream one step closer! Ben has since taken his drive for savings up a notch. He now tracks all of his accounts in one place with Pioneer Path.
Tom fell into one of the most common traps when saving for a home loan deposit: he didn't separate his savings and spending accounts. What sounds like an obvious step, Tom quickly lost motivation to keep saving as he couldn't see where his efforts were going. The simple fix? Have a dedicated savings account.
"Making the effort to save is great, but managing your savings, income and expenses out of one account can start to get very confusing. By opening a new savings account that has little to no fees with good interest rates, I was able to see how much I had saved at a glance without having to crunch the numbers in my head. By setting up a direct deposit into my savings account on the day after I got paid, I was never tempted to spend the money."
With an energetic 4 year old girl, Stacey, Sarah and Oliver were your typical young, happy (and now tired) Aussie family. After finding out they had another on the way, it was time to upgrade from the 2 bedroom home they currently lived in. Instead of wanting to sell their existing home, they lease it out as a rental property whilst living in the new house; the only thing standing in the way of their deposit was Sarah's love for the finer things in life.
"As painful as it sounds, the area that will make the most positive impact on your savings account is cutting down on luxuries. It might sound like torture but instead of removing all things lush from your life, reevaluate which luxuries you can live without or begin spacing purchases further apart so you don’t lose too much of your beloved lifestyle. In a few weeks time, the first luxury you cut will be a distant memory and your savings account will be growing in no time."
Buying lunch at work each day? Setting a savings goal in Pioneer Path to cut down on eating out could save you more than $3,700 a year! Click here to learn more.