Understand what you need to do in order to achieve your savings goal.
This year has been a challenge for many, to say the least. We have endured global uncertainty and faced the consequences in our everyday lives.
Yet through all the turmoil, pockets of opportunity have aroused for West Aussies. The State and Federal Government have created an economic response to COVID-19 with stimuli in the form of grants, bonuses, JobKeeper, easier access to Super Funds, Centrelink payment increases and more.
One notable stimulus is the Federal Government’s HomeBuilder, which provides eligible owner-occupiers (including first home buyers) with a grant of up to $25,000 to build a new home or substantially renovate an existing home.
West Aussies were also provided with the additional home construction grant of up to $20,000. This has stimulated an increased interest for building homes in Western Australia.
It is suggested by Realmark that there is renewed focus on residential property, particularly for first home buyers. This may be seen as a positive time to enter into the property market, but how exactly do you budget for the Aussie dream?
As much as we all wish for it, saving for your first home won’t happen overnight. While it will take some time and dedication, it doesn’t have to be intimidating. So, we’ve broken the saving process down into a few simple steps to help you make sense of it all.
Understand what you want to achieve, and then write it down.
To start your saving journey, you must first understand how much you need for a home deposit, and then how long you will give yourself to save for it. It’s important to note that this goal may change during the process as you gain more information or if your circumstances change.
We recommend that you write your goals down, as you will be 42 per cent more likely to achieve them. It creates clarity over what you want to accomplish and plays a part in motivating you to complete it.
Another tip for writing your goal down is to follow the SMART template. This means that your goal needs to be:
Specific: Well defined, clear, and unambiguous.
Measurable: With specific criteria that measure your progress.
Achievable: Attainable and not impossible to achieve.
Realistic: Within reach, realistic and relevant to your overall life goals.
Timely: With a clearly defined timeline, including a target date.
So, an example of a SMART goal is,
“To save $60,000 for my first home deposit by December 2022.”
This goal will look different for everyone as it needs to be realistic and achievable for your given circumstances. You may choose to break this overarching goal into mini goals, so that it appears less intimidating.
Create your budget using budgeting tools.
A budget is essential for achieving any savings goal. Creating a budget can be a difficult and painful process, so Capita has teamed up with Moneysoft to offer you a budgeting tool.
This process will automatically collect all your financial account transactions, no matter where they are held and will categorise your income, debt and expenses into different buckets. The budgeting software will even allow you to enter your goal and then assist you in tracking it.
Get assistance from a Financial Planner.
This is potentially the most important step in the process. A Financial Planner will look at your personal circumstances and showcase the best option for you to ensure you achieve your goals, stress free. This is something you will want to particularly consider if you have any debt or struggle to wrap your head around your finances.