(03) 9020 2905Calmly, with your partner, walk into your bank brandishing loaded handguns. Pulp Fiction: “All right, everybody be cool. This is a robbery!”
That would certainly get you into a new home. One that serves porridge.
So, let’s try the more conventional method. You know … the boring plan that’s largely hard work and sacrifice, but will be successful.
First, you’ve got to get your financial house in order.
Get rid of “dumb” debt – credit cards, and car/furniture loans. Pay your credit cards down, then cut your card limits.
Order your free personal credit report from Veda Advantage. If there’s a mess on there, you’ll need to clean it up.
Now, saving. How bad do you want this home?
How do you save your 10 per cent deposit (15 per cent including stamp duty)? It’s called “delayed gratification”. Determine how much savings you need to put away each week and do that before you do anything else.
Go out less. Drink less. Cook at home more. Buy fewer clothes, CDs, lunches. Keep driving your old car – don’t update it. Make your own good coffee, rather than buy it.
Understand the huge difference between “need” and “want”. Most junk in our life is stuff we want, not stuff we need. When you’re going to purchase anything, ask yourself if you really need it. Most times, you won’t.
If you stop yourself buying the wants, you’ll be amazed at how quickly your savings build.
Bruce Brammall is the author of Debt Man Walking (www.debtman.com.au) and principal adviser with Castellan Financial Consulting.