10 Tips For Saving For A Deposit On An Investment Property

1. Set a savings goal The first step is to work out how much you need to save. This will depend on the purchase price of the property as well as any associated costs like stamp duty. Once you know how much you need, you can start setting yourself a savings goal. 2. Make a budget It's important to make sure you're living within your means so that you can maximise your savings. Start by looking at your income and expenses to see where you can cut back. There are a number of budgeting apps and tools available that can help with this process. 3. Open a dedicated savings account Once you've set a savings goal, it can be helpful to open a dedicated savings account. This will help you to keep track of your progress and make sure your money is working hard for you. Many banks and financial institutions offer specialised savings accounts with features like bonus interest and no monthly fees. 4. Automate your savings One of the best ways to make sure you stick to your savings goals is to automate your savings. This means setting up regular transfers from your everyday account into your dedicated savings account. This way, you'll never even see the money and it'll soon start to add up! 5. Make extra repayments on your mortgage If you already own a property, making extra repayments on your mortgage can be a great way to reduce interest and increase equity to put towards your next property's deposit. Every little bit helps, so even if you can only afford to make small extra repayments, it will all add up over time. 6. Get a part-time job If you've got some extra time on your hands, getting a part-time job can be a great way to boost your savings. You could look at picking up some casual work, freelancing or even starting your own side hustle. 7. Sell unwanted items Do a spring clean of your home and sell any unwanted items online or at a garage sale. This is a great way to declutter your home and make some extra cash to put towards your deposit. 8. Seek professional advice If you're not sure where to start or need some help getting organised, seeking professional advice can be a great idea. A money coach or mentor can help you set up a savings plan and provide guidance on how to reach your goals. 9. Start investing There are many micro-investment options that you can start with smaller cash savings and they can be a great way to build your wealth and generate additional income to put towards your deposit. However, it's important to understand the risks involved before you start any sort of investing. If you're not sure where to begin, seek professional advice. 10. Be patient Saving for a deposit can take time, so it's important to be patient. Stay focused on your goal and don't give up! We're here to help! Want to kick start your savings in order to reach your first or next deposit sooner? If you're already a member, speak to your mentor about your savings goals. If you're not, book in a discovery call with one of our mentors and get take the next steps on your property journey today!