Smart money hacks

Developing good saving habits are an important part of life that can support you towards the home ownership journey but it can be tough to know where to start. Here’s some small changes you can implement as part of your everyday routine that quickly add up in the long-term.

Smart Money Hacks new

1 Track where you are spending your money

It’s easy to lose track of how much money you’re spending, what it’s being spent on and the proportion of your income that makes it into your savings account.

Setting up a method to track your spending should be the first step in improving your saving habits. You can use apps, spreadsheets or keep a list of your expenditure and review this regularly. Most banks provide tracking tools and apps that categorise and provide insights into your spending habits. Your spending will consist of both fixed and variable expenses.

Fixed expenses are less likely to change from month to month and include your rent, utilities, insurances and any other debt payments. Variable expenses include items such as food, clothing, entertainment, fitness and travel.

Monitor your spending and categorise it by type of expense to develop a greater understanding of where your money is going and identify areas where you can cut back.

This research provides a strong foundation that can inform your weekly or monthly budgets and help you create one that is challenging but still realistic.

2 Automate your savings 

Avoid the temptation to spend by automating your savings. You can do this by setting up a regular direct debit to your savings account. You can also set up a bank account or app to round-up each of your transactions to the nearest dollar with the change being deposited into your savings account. This is a painfree method of building your savings, which will build up quicker than you think!

3 Plan ahead

Make sure to allocate time each week to plan out your meals before going grocery shopping. Being well-organised will make a surprisingly big difference to your grocery bill as you spend less on groceries you don’t need. Having a meal plan also makes it far less likely that you will buy your lunch at work or get take-away for dinner regularly which can become very expensive when you add it up.

4 Buy only what you need 

If you find yourself spending money on unnecessary items, start a habit of taking some time to think before you buy and only buy what you need.

It’s not a bargain if you don’t need it

Saving for a house deposit 

To save for a house deposit, you first need to understand the total amount you will need to save in order to have the ability to get an approval from a lender to purchase your ideal property, typically you will need a 20 per cent deposit. When setting saving goals, be realistic about your household situation and the timeframe you set yourself to save up this amount. There are other options to assist you achieve home ownership sooner, such as purchasing a home with First Home Guarantee (FHG) or Lenders Mortgage Insurance (LMI).

Case study

How lenders mortgage insurance can help you purchse a home sooner

Jenny and Tom have found a home they 1 1 want to buy for $700,000. Typically, they would need a 20 per cent deposit ($140,000) to secure a loan from their lender. By the lender taking out Lenders Mortgage Insurance (LMI), their lender is prepared to provide a loan up to 95 per cent of the value of the home ($665,000 if the home is valued at $700,000). This means that Jenny and Tom can secure a home loan sooner with a 5 per cent deposit ($35,000) and stop paying rent. Their lender passes on its LMI premium cost to Jenny and Tom by way of a fee.

LMI only protects the lender if Jenny and Tom default on their loan repayments. 

Saving for a $35,000 deposit instead of a $140,000 deposit is more achievable in a shorter timeframe.

Lenders Mortgage Insurance (LMI) enables you to buy a home without having a 20% deposit which is typically required by lenders.

Lenders Mortgage Insurance (LMI) may help you to: 

  • Buy a home sooner and stop paying rent

  • Build financial wellbeing and security

  • Avoid possible property price increases in Australia by buying sooner.

Talk to us today if you have any questions regarding lender’s mortgage insurance. Call us on 03 9553 0271.

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Authorised Representative 298494
Interprac Financial Planning Pty Ltd 

Darryl Jopling

Senior Adviser

I have worked in the financial services industry since 1982 and as a Financial Adviser since 1999.

I have worked for large Financial Planning businesses, Membership based organisations and looked after the financial planning needs of clients within an Accounting Practice before starting my own business.

I am married, have 4 older children and a grandson and I am keen golfer with mixed results like many .

I have been through many of the strategies I talk with clients about myself and with my family.

I have been through the journey of seeing my parents move into Aged care and negotiated the difficulties and pitfalls of understanding the system for them and this gives me an excellent insight into what is required to assist families at this difficult time.

In a previous roll I used to run retirement seminars looking at Centrelink and Retirement Incomes and how to make these work for you. I have helped many of my clients with Aged Care advice when their parents needed to move into Nursing Homes. For many clients I assist them with superannuation, building wealth and protecting their loved ones with insurance.

I am supported by his, Licensee, Interprac Financial Planning’s in-house resources and ongoing technical, systems and training.

I am committed to understanding your needs and identifying strategies and products to help you achieve your goals.

My guiding principle as an Adviser is to design plans which help to provide my clients with clarity of purpose and the opportunity to build a solid financial foundation.
I will take the time to listen, explain things clearly and keep you informed throughout the advice process.

My experience is complemented by professional qualifications including:

  • Certified Financial PlannerTM Professional
  • Diploma of Financial Planning

At Choice Financial Advice we work with you along the way on life’s journey.

Whether you are getting married, starting a family, embarking on the trip of a lifetime, planning to enjoy your years after work or assisting elderly parents with Aged Care and Nursing Home placements, we can help.