Time to save calculator

1. Set a important goal. You’re only going to commit to your financial goals if you’re really invested in the outcome. If homeownership is the dream, keep reminding yourself why you’re committed to your savings plan.
2. Define a clear savings plan with clear savings goals. If you’re saving to buy a home, you’ll need to calculate the upfront costs (deposit, stamp duty and government fees, upfront or starter fees, conveyancing and more). It’s also important to know how much you need to set aside each week, more and year to hit your savings goal.
3. Automate Your Savings - Most bank accounts allow you to set up scheduled and recurring transfers in your online banking to move your money from your everyday or transactions accounts into your high interest or high yield savings accounts. This means you can set and forget and your savings can benefit from compound interest over-time without much effort.
4. Check if you’re receiving a high interest rate. A good saver knows that not every provider is created equal. The interest rate offered on savings accounts can vary wildly. Use an interest calculator to see if there’s a better option out there for you to increase your total interest earned. Some fixed-term deposit accounts may offer super high-interest rates, but in return they might lock up your money for longer. The trade-off might be worth it if you’re clear on your financial plan, but always check the t&cs.
5. Pay down high-interest debt. Personal loans, credit cards and other high-interest personal debt may affect your credit score and hinder your ability to save money. You may also be able to refinance or consolidate your repayments by refinancing to a provider with lower interest rates. Did you know that $10,000 in credit card debt can reduce your home loan borrowing power by as much as $40,000?
6. Hack your lifestyle. If the cost-of-living is making regular savings difficult, consider reviewing your regular outgoings: are there any unnecessary subscriptions, Uber fares (when you can get public transport) or expensive compounding lifestyle habits that you can do without?
7. Get independent financial advice. If you’re looking for help with your financial decisions, speaking to an Australian financial advisor may help you explore the best savings plans or financial products for you. While this article is a guide (and a good one!), don’t forget to get independent advice and your financial situation will be different to everyone else’s.
   

Each Australian State or Territory has specific eligibility criteria to qualify for home buying concessions. See this guide to find out if you qualify and where to find more information.