Real Estate | 3 Expense Alterations To Set Up A Winning Budget For Your First Home

Buying your first home can be incredibly daunting, especially when you consider the fact that the median price of an Australian home will set you back by over $660,000. If you're looking to save for a deposit for a real estate property, then you must pay careful attention to the way you currently spend money. Small alterations to the way you spend will help you set up a winning budget for your first home.

Re-Think Unnecessary Expenses On Your Credit Cards

Go through your credit card statements and look for unnecessary expenses that can be avoided. For instance, premium television subscriptions and personal training gym memberships can be relinquished in your quest to save money for a deposit to buy your first-ever real estate property. Making these small sacrifices can go a long way in speeding up your efforts to raise the initial deposit amount of at least 5 percent of the total cost of the house.

Buy Daily Provisions In Bulk To Save Money

If you can buy in bulk, then try it out because you're bound to save some money over time.  For instance, buying non-perishable provisions like toilet paper, garbage bags, dishwashing liquid, long-life milk and pantry spices in bulk will help you save more money over the long run because they are available for a fraction of the cost, in comparison to regular retail stores. You should ideally know how much you pay at regular retail stores for each item, so that you know whether something is cheaper or not when you buy in bulk. While the average weekly spend on groceries for a single person is $104, buying some provisions in bulk will help you shave off several dollars from your weekly expenses.

Choose Specific Habits To Give Up

If you have a daily coffee consuming habit, then you should consider getting rid of it for the time being, especially when you're paying $3.89 for a cup in Perth and $3.32 for a cup in Sydney. If you can make a cup of coffee at home, then imagine the savings you'll have at the end of every month by simply giving up this habit temporarily. Similarly, if you're in the habit of spending the nationwide average of $32 per week at restaurants, then you should cut back on it or cut it out completely to save yourself a few hundred dollars every year. You can easily put this towards added savings towards your house deposit.

Making small alterations to the way you spend money will help you set up a winning budget for your first real estate property.