How do I start saving? - Capital Advantage

Saving money for a home deposit can seem like
a daunting prospect. But putting pen to paper
and making some sensible budgetary decisions
will help simplify the process.
Before you start saving in earnest, it would be
best to cut down your immediate debts –
particularly credit card debt, which bears the
highest interest in most cases.
Once you’re ready to make a budget, look at
your annual net income and determine how
much of your wage you could allocate into
savings. To do this, list your regular monthly
expenses, such as household costs, utility bills,
petrol, groceries and public transport costs.
Next, note down your less essential expenses,
such as eating out, clothes and holidays. When
you have an approximate figure, deduct your
monthly expenses from your monthly income
after tax. This will show how much money you
could be putting into savings each month. If it is
less than the amount you’re aiming for, consider
sacrificing something on your list of non-essential
expenses.
If you are a first home buyer, governmentassisted
First Home Saver Accounts have low
fees, low taxes and high interest rates of 17 per
cent, which could increase your deposited
savings by up to $6,000 per year. However, you
can only withdraw money to buy a home, to
transfer to your super, or to pay into a mortgage.
Saving for a deposit on a home is not impossible.
It’s about being realistic and having a set time
frame