More budgeting strategies to save for your first/next house deposit.

News
July 13, 2020

Budget, a word that gets thrown around a growing household once a month as the children grow
and expenses get bigger, or tied into your new year’s resolution EACH year; and almost always
involves setting over-ambitious goals in the beginning, to only see us fall off the bandwagon and
back to our old, comfortable habits the following month.

What if there was an easier way to do it, a system that makes sense and allows us to track, manage
and help keep you accountable toward this? That’s half the battle, right?
First things first; here is a guide to a budgeting strategy that might work for you.

1. Work out exactly what cash you need for ‘essential living’ like rent/mortgage, utilities, food
and car/transport, children’s annual school fees etc. This should equate to approx. 40 – 50% of
your income. Put this away into a bills/fees/rent account that continuously gets used for
everyday needs.

2. Work out the costs for the ‘nice-to-have’ items/things – This includes a monthly allowance
for comfort items like Sunday brunch, your gym membership, TV subscriptions, dinners, that
awesome outfit you saw in the store window etc. These items are considered a nice to have
but not essential to living and should equate to 30% of your hard earned pay (short term
happiness that we work hard for!)

3. After you have spent your income on living and items that bring you joy, the final 20%
should be put towards long term goals like a house deposit for your first home, your second
investment property and other items that assist you in building long-term wealth.

This budget strategy is called the 50/30/20 rule and ensures that you get everything out of your
weekly pay that enables you to live, be rewarded for your hard work and also concentrates on saving
for future investment to allow you to build more wealth. If your everyday or nice-to-have expenses
are less, this enables you to build more money into your long-term wealth plan. Even better!

We go one step further, whilst you set this up, we help you monitor and follow this. By being a
Ramsey Property Wealth client, we give you access to our Ramsey Wealth Desk app that allows
you to track this and help us help keep you honest!

When it does come time to crush that goal, buy your first home or investment property, wealth deck
allows us to help form your application with the bank and with your ‘savings’ record we help manage
this process via our seamless end-to-end digital process, making life easy for you to enjoy the fruits
of your labour!

Get started on your long-term property goals, with us. Call us for a 15 minute discovery call with a
member of the Ramsey mortgage team today and we can help you achieve your long term goals.

Any advice contained in this article is of a general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regard to those matters. Information in this article is correct as of the date of publication and is subject to change.