Planning for a wedding while saving for a new house can feel equal parts exciting and overwhelming. Especially financially. Unfortunately, there is no avoiding that saving requires sacrifice and dedication. However, with such high rewards, the short term pain is easily outweighed by the long term gain. To ensure that your excitement continues to outweigh the stress, here are 7 essential tips to help you save for your first house and a wedding at the same time!
1. Know how much you need to save
Having a fixed goal is important, so that you can see a light at the end of the tunnel. It’s also important to be realistic. Start with the time frames you’re setting yourselves. Based on your income and what’s most important to you, could you extend your engagement another year or two? Find out from your lenders how much of a cash deposit is essential to secure your first home.
If you need finance advice, there are some great resources located in the Finance for First Home section of our website.
2. Create a detailed budget planner
Start by taking down all of the spending you do in a month and from there you can easily separate the necessities from the luxuries and identify areas that are possible to cut back on. ASIC offers a couple of useful apps – Track My Goals and Track My Spend – to take the guesswork out of your expenses and savings.
What’s most important to you? Weddings are the best day of your life, however they only last one day (or a week if you’re lucky enough to be Indian!). Whereas your house could be with you for your lifetime. Finding some cost effective ways to save on your wedding costs could be a way of minimising your total savings goal. From simply changing your wedding date to self catering – check out this terrific Buzz Feed article with 33 ways to save money on your wedding.
Look for cost saving ideas for your wedding.
Also figure out what areas are important for you to buy in. By moving further out of the CBD, you not only reduce the total cost of your property by tens of thousands, you will also find that living expenses also tend to be cheaper. Have a look at this article from Domain offering some great ideas on how to save for both the wedding and the house, by making smarter choices.
4. Cut back on luxuries
Eating out, cable TV, new clothing purchases and alcohol are things we could all probably cut back on. Another less popular option is – if you can – ditch the car. An average car in Australia is estimated to cost $8000 per year, while public transport costs on average less than $3000. That’s an extra $5000 a year straight into your savings.
It’s no secret that Australians love their coffee. However, with an average coffee costing West Australians in excess of $4 per cup, buying a coffee each day before work ends up costing you more than $1000 per year. Is it really worth it? Don’t be a martyr, entertainment and hobbies are essential for a healthy lifestyle, just look out for cheaper options. Bravely switch back to instant coffee for a year or two and save your barista made flat white for your splurge meals out. Check out some other suggestions from Tourism WA for free things to do in and around Perth.
Escape Australia’s expensive coffee obsession.
5. Utilise high interest savings accounts
Shop around and check which banks offer the best interest rates for savings accounts. Deposit money into them and DON’T touch them! Our lending partners, Iconic Home Loans, offer superb advice on all things finance related, first home grant applications and possible stamp duty exemptions.
6. Live on one income
With both of you working and minimal financial commitments, this is the perfect time to save. Optimise your budget so that your combined living expenses are covered by just one of your pay checks, while the other wage transfers quietly into your nominated savings account each month.
7. Move back home
As style cramping as it may be, parents understand just how difficult it can be to save for your first house. Ask if your parents would be willing to let you live with them for a set amount of time without paying rent, or even paying board. If you don’t have that option, try simply moving into a cheaper rental or flat-sharing. Switching from $350 to $150 per week makes a massive difference in saving potential.
Ask the oldies if you can move home while you save for your first house.
Even with all of these helpful tips for saving, a home deposit combined with a wedding will be no small feat to accomplish. However, by making a few necessary lifestyle changes and committing to them, you will be reaping the rewards of a beautiful house and wedding before you know it.
Getting your first home is easy with Aussie Living Homes. Find out if you qualify for a home of your own.