6 Ways For New Couples To Save For Their First Home (Without Sacrificing Too Much)

Once you and your partner have made the decision to purchase your first home together, saving up for a deposit is often difficult for many couples. Thankfully, there are quite a few simple ideas out there that can really help to stretch your dollars further. Not sure where to start? Here are few money-saving, penny-pinching tips to help you both meet and even exceed your financial goals.

Create A 2nd Income

When it comes to building up cash quickly for a home deposit, there’s almost nothing better than having a second income. The good news is that everyone should be able to create a second income by starting a side hustle after hours. It doesn’t even need to be anything fancy. Increase your income by mowing lawns, repairing cars, teaching a course, providing home handyman services, selling stuff online, driving for Uber, or freelance writing. The weekend and weeknights are yours, so you’re only really limited by your imagination.

Reuse Over New

Just like all the environmentalists say, we should all recycle, repair, and reuse wherever we can. So, to help you save, search for ways that you can reduce consumption of your resources. Think outside the box with every single item you use and ask yourself if there’s any way you can reuse it. Repairing your old iPhone that’s one or two generations old will be much cheaper than buying the latest model, most likely saving you over a thousand dollars in the process. And instead of spending up big in department stores or online marketplaces, head on down to St Vinnies for things like clothes for the kids, tools, home decor, and other household goods like dishes, furniture, and flatware.

Don’t Overspend On Your Wedding

When it comes to budgeting and planning for a wedding, you can actually save a whole bunch of money without sacrificing any style. It's all about allocating your wedding funds wisely, listing your priorities and setting yourself a realistic budget. If you can’t live without a five-tiered showstopper cake, trade those sugar flowers for some pretty-looking fresh flowers and have it made with buttercream instead of fondant. And instead of buying a designer wedding dress, shopping second-hand or at sample sales could save you anywhere up to a whopping 90 percent off the original prices. You can also rent your jewellery at a fraction of the cost of buying it, like $400 for a $40,000 piece, but you will unfortunately have to return it afterwards.

Hold Off On Impulse Purchases

We all seem to spend a whole lot of extra money on random things we don’t really need. In fact, the whole advertising industry exists because of it. So, instead of spending cash on an impulse buy, try giving yourself a spending freeze instead. Before making one of those gotta-have-it impulse purchases, try using the 24-hour rule and make yourself wait a full day before buying it. It’s truly amazing how much clearer we think about things simply by taking a step back from whatever it is we want to buy. Most of the time you’ll decide you don’t really want it any more by the end of that waiting period. But if you decide you still really do “need” it the next day, try making yourself wait a full week before making the purchase. It might sound excruciating, especially if it’s something on sale or limited edition, but it can actually be a fun challenge. Just remember that not spending any money really is the best way to save it.

Encourage Your Spouse To Save Too

Making dreams happen like owning your first home revolves around making better financial decisions, but remember, you’re not alone in this. You and your partner are working towards something you both want together, which means making difficult financial choices should be much easier. You both need to support each other by setting financial goals together that you are both committed to. Because you should both have the same dreams, the same desires, and the same goals when it comes to home ownership, you should always be looking for ways you can both actually make these dreams become a reality together.

Automate Your Savings

Automated or “forced” savings which are deducted from your income account automatically are an excellent way of saving because wanting to save money is pretty much against human nature. By setting it and forgetting it, you never even get a chance to see the money in your spending account before it’s been added to your savings. While it may feel really difficult when you’re just starting out, these savings can seriously add up and grow very quickly over only a short amount of time. And when you do see the increasing number at the bottom of your savings account statement, you’ll both feel way better about having slightly less cash to waste on beers on a Friday or avo and toast on the weekends.

Final Thoughts

While buying your first home together can be a long and seemingly insurmountable process, think about it like preparation for home ownership. That’s because you’re going to have more expenses after purchasing your home, some of which will be big ticket items. So, this will prepare you both for living with for the extra costs that come with owning your own home together.