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What Was Your Budget While Saving for the First Deposit?

Discussion in 'General Property Chat' started by House, 3rd Apr, 2016.

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  1. House

    House Well-Known Member Premium Member

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    Wondering what everyone lived off while saving for their first deposit? Was it easy to stick to for the long term?

    Moving in with the partner and her mum soon so will be living rent free for probably the next year to help boost the savings. Looking to save about $40k in that time which means living off $200/wk after food, travel, phone etc.

    Think that's pretty reasonable as my spending and money management is fairly good but of course could be reigned in a bit more.

    Already got my sights on my managers role at the new job and was told it's all mine once I've been there long enough to prove myself so that will help massively but in the meantime thinking of also working Sunday or start an online business for an extra $200/wk.
     
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  2. Blacky

    Blacky Well-Known Member

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    I earned $2,000/month in my first job. From that I paid $150/week in rent and then all the usual bills thereafter.
    It was uncommon for me not to be able to save $500/month. Regularly it was closer to $800 an occasionally $1,000.

    I got a second job pulling beers at the local. Which was usually sufficient to pay my rent and food.
    I saved about $20000 in about 18mobths.

    That was 15odd years ago, but I don't think things are that different now. Any living cost increases would be covered by increased salaries.

    One thing which helped me was that I enjoyed diving. So I ate mostly rice and seafood. :p

    Blacky
     
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  3. joel

    joel Well-Known Member

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    Earned $1000 a week after tax, saved ~$700 of that. I paid rent and that was it, any bills/food/transport was paid for by other income from subletting rooms or dog sitting. So I lived off $150-200 a week. This was last year.
     
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  4. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    When saving the deposit for my first IP (already had PPOR) I tracked my spending for all of 2013:

    $15.9k

    That included EVERYTHING except my PPOR mortgage payments. I had a $35 week limit on food which helped.

    Best year of my life, believe it or not. Very easy to stick to once the habits were formed. I replaced my car with my bike, dinner with friends with walks by the river, watched a lot of sunsets and had more meaningful conversations and experiences with people close to me than any other time.

    I kept the same level of spending until after I bought my second IP about 6 months later.
     
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  5. freyja

    freyja Well-Known Member

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    My first deposit was a while ago now (15 years). My fiance and I sold our second car and cut the entertainment budget significantly. We spent many weekends walking to the library to borrow books/movies and a big treat was a custard tart from the local bakery. I can't remember the rest but these two memories are fond ones :)
     
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  6. mouseburger

    mouseburger Active Member

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    My budget was $250-$300 a week, which included food, transport, insurance, utilities. It was easy to stick to because I paid myself first - you don't miss what you don't see. About 30% of my income went into a First Home Saver Account, plus a bit extra for a cash buffer in a separate account.

    I could've saved faster if I hadn't rented alone but I was sick of share house drama - the savings weren't worth the hassle of theft, drugs or angry exs turning up to fight with my housemates. So it took longer to save for a deposit but I accepted that.
     
  7. Leo2413

    Leo2413 Well-Known Member Premium Member

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    First deposit I saved from all sorts of odd jobs around the house, mail drop etc. Worked part time and I saved most of it. .Can't remember exactly how much. I had my deposit not long after but ended up being around short 3k
    .My parents lent me 3k after I put a written submission to them why it would be a good idea. They lent me the money with interest i had to pay back. Dad said son there is no such thing as a fee lunch in life. Paid them back less than a year later with interest. Later on i found out they gave the interest to a charity.

    I owe everything I have to my parents.
     
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  8. Mooze

    Mooze Well-Known Member

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    Currently saving for our tgird deposit (variety of factors mean we can't access equity and need a 20% dep this time).
    We're currently on 1.5 incomes as I'm on mat leave. We sold our landcruiser, ended up doing four weeks without a car, bought a cheap camry in the end.
    Even with two kids we're managing to save over 70% of the full income. We'll have the deposit by end of year at the latest. Helps that the kids love playgrounds which we've got many close by.
    If the baby had been a bit older we'd have done with bikes and kid trailer but that's not great for their necks too young.
     
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  9. Hanison

    Hanison Well-Known Member

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    My first property deposit I set about a challenge to save a minimum of 100% of base income.
    I had a few aces up my sleeve in the fact that I had access to a company car, company phone, lived rent free at parents place, zero consumer debt, zero student loans, highly motivated and hyper focused.

    I worked sat/sun's, Christmas day, boxing day, new years eve, Australia day.
    The only day I can't ever remember working in my life is a Easter Sunday.
    I constantly pushed for 100 hours a week.
    We joke about it now but over a weekend I once did 20hrs, slept for 4 hours, another 22hrs, caught a taxi to the airport to catch my flight home, and was the first person to turn up to the office 530am Monday morning, looking for my next project.

    I was hungry back then. I also left some of my sanity back there over those few years. But I don't think I have ever looked back and said I wish I never did that.

    Something that helped me a lot was that I kept a picture on the locked screen of my phone that said "whatever it takes"
    Every time I opened the phone, whatever it takes, would echo in my mind.
    It's very hard to become idle when each time you check the time of day for instance your faced with "whatever it takes"

    I'll be the first to admit that this was over kill. But I learned its a part of my nature.
    Do or Do not. I'm unable to settle for anything in the middle.
     
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  10. jpcashflow

    jpcashflow Well-Known Member Business Member

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    Really cool topic :).

    When i bought my first house at 20, I was living with Mum and Dad... I honestly had about three jobs at the time and I was only spending about $50.00 a week going to my favourite Saturday hangout.

    But that was 11 years ago and cost of living has increased!!
     
  11. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Is that for yourself - or you and your partner?

    $200 per week as an individual is doable - as a couple I think it would be very tough - especially if it includes bills such as phones, etc.

    Cheers

    Jamie
     
  12. Leo2413

    Leo2413 Well-Known Member Premium Member

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    @Hanison I identify quite strongly with your entire post. Great post.
     
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  13. JZ93

    JZ93 Well-Known Member

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    Bought my first house at 22 early this year. I lost my license for 14 months so l moved back home and rode to work most days. Was a blessing in disguise!

    I'm only on 800 a week after tax I reckon I saved 700 of that a week. After 18 months or so I had near 50k saved
     
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  14. Joshwaaaa

    Joshwaaaa Well-Known Member

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    sounds like me, I was already living with my folks but lost my license when much younger and much dumber. Ended up getting lifts to and from work with the boss man and doing the same hours as him, 12 hour week days, and 8hrs on a saturday. Hardly ever went out because it was either too hard or was too busy sleeping. Had my deposit by the time I got my license back.
     
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  15. House

    House Well-Known Member Premium Member

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    Interesting responses from everyone and awesome to see great success developing from sacrifice and focus :)

    @Jamie Moore $200 is for myself which should be fairly easy. Don't think she's as keen to budget as she has expensive tastes!

    @joel pretty much what I'll be aiming for too so glad to see a recent example. Those other guys had it easy 15 years ago :p

    @Hanison nice! 100 hours is an incredible effort. It's your fault I've now replaced my gf on the locked screen with this classic

    image.jpeg
     
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  16. dabbler

    dabbler Well-Known Member

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    First time round, did not save with buying property in mind.

    At another time, it was the other way round, get as much together as possible, now look for what fits the potential lend to make up the rest.

    In regard to your budget, you can live of far less than 200/week after main expenses, especially if you try and work every day, not only is it cheaper to be at work, your getting paid to be there !

    To be honest, I had to live that way for some time, I now find it normal. It also depends on how many things you can do yourself.