Christmas Choices

Is buying a new home on your Christmas Shopping List this year?  Buying your dream home is one of the biggest and most exciting purchases you are ever likely to make.  What a great Christmas present to yourself and your family!  The credit card will not stretch that far though.

Saving the required deposit can be the most difficult obstacle to overcome, preventing many people from achieving their dreams.  So what can you do?  You need to budget!

Yes I know ‘budget’ is a boring and dirty word, and it is at this Christmas time of year that budgeting becomes even more difficult.  However life is all about choices.  Everyday choices, which can mean forgoing today’s pleasures, in order to achieve your goals tomorrow.  So where to start?

Firstly write down what your income is (after tax).

Then you need to determine where your money goes.  Collect your bank and credit card statements.  List your expenses into categories:  A great idea is to take advantage of free budgeting tools such as provided on MoneySmart, the government ASIC website.  Go to the budgeting section, and use the free tools available.  There is a great xls. spreadsheet you can download, save, and regularly update.

Many people are surprised when they see exactly where their money goes.  Having the knowledge enables you to make adjustments.  Start with the easy and obvious savings on your discretionary spending, but remember to evaluate every item.  Set goals, a possible goal is to save 10% of your income towards your new house.  Allocate that before spending and see how you go! 

Look to make small savings, do not give up.  Give yourself a realistic time frame to save based on your capabilities, time should be your friend not your enemy when it comes to accumulating a deposit.

If you have your dream home in mind put up a picture of it on your fridge, or on your bathroom mirror, to see every morning.  Seeing your goal will help you achieve it.  Short term sacrifices are more than worth it in the long run.

Integrity Finance Australia has a number of clients we are working through this process with.  Planning to buy a home is often years in the making, keeping an eye on the end goal is paramount.  If we can assist you in planning your home purchase please call!

The team at Integrity Finance Australia wish all a very Merry Christmas Season and a Happy New Year.