Trying to Save a House Deposit? Here's Exactly How to Do It

Trying to save a house deposit can feel like a huge challenge, especially when living costs keep rising and unexpected expenses keep popping up. Where do you even start, and how do you make real progress without feeling like you’re constantly sacrificing? In this guide, we break down practical, actionable steps you can take to grow your deposit faster, so buying your first home feels less like a distant dream and more like an achievable plan.

Understand Your Deposit Goal

How Much Do You Need?

Most Australian banks require a deposit of 10–20% of the property price. For example, if a house costs $600,000, you’ll need between $60,000 and $120,000. While that might feel overwhelming, it’s entirely possible to reach your target with a clear plan. 

Start by checking house prices in your area. Note the average price of properties that suit your needs, 

Set a Timeline

Once you know your target, set a timeline that’s achievable. Most first-home buyers take three to five years to save a deposit, and giving yourself enough time helps reduce stress and keeps your plan realistic. 

Break your total goal into monthly savings targets. For instance, if you need $80,000 over four years, that works out to about $1,667 per month. Focusing on smaller, manageable amounts each month makes the overall target feel much more achievable and keeps you motivated along the way.

Create Your Savings Plan

Track Every Dollar

You can’t start saving effectively if you don’t know where your money is going. For one month, write down every expense, including small purchases like coffee, snacks or online subscriptions. These ‘minor’ expenses add up faster than you might think. 

Consider using a simple notebook or a free budgeting app on your phone, and be honest with yourself. This step is crucial to understanding your spending habits.

Build a Realistic Budget

Once you’ve tracked your spending, review it and divide your expenses into three categories:

• Needs (rent, food, bills)

• Wants (streaming services, eating out)

• Savings (your house fund)

Focus on reducing spending in the ‘wants’ category rather than cutting back on essentials. You still need to enjoy life while saving, but adjusting discretionary spending can make a big difference to how quickly your deposit grows.

Find Practical Ways to Save More Money

Reduce Your Biggest Expenses

Your rent or mortgage is likely your largest monthly cost. Consider options, such as:

• Moving to a cheaper place temporarily

• Getting a roommate to split costs

• Moving back in with parents if possible

Next, look at your car. Selling it and using public transport can save hundreds each month when you factor in payments, insurance and fuel.

Cut Small Expenses That Add Up

Simple everyday changes can make a surprising difference. Make coffee at home instead of buying it, saving roughly $150 per month, and pack your lunch for work to add another $200 to your savings. 

Also, review your bank statements for unused subscriptions and cancel anything you don’t use; most people have at least one forgotten membership. Reducing eating out to once or twice a month and cooking simple meals at home can save money while also improving your diet.

The 24-Hour Rule

Before making any purchase over $50, wait 24 hours. This helps curb impulse spending and often reveals that you don’t actually need the item. You’ll be surprised how often this small step protects your savings.

Increase Your Income

Ask for a Raise

If you’ve been at your job for over a year, it might be time to ask for a raise. Prepare a solid case by highlighting the value you bring to your team, your achievements and any additional responsibilities you’ve taken on. Even a modest increase can make a meaningful difference. For example, a $2,000 yearly raise adds about $166 per month to your house deposit fund, helping you reach your goal faster.

Start a Side Hustle

Another way to boost your savings is by earning extra money outside of your main job. Think about skills or hobbies you can monetise. Options include:

• Freelance writing or design

• Tutoring students

• Walking dogs

• Selling items online

• Driving for rideshare companies

Even earning an extra $200 per month from a side hustle contributes $2,400 to your deposit in a year, which can significantly accelerate your progress.

Sell What You Don't Need

Take a look around your home and identify items you haven’t used in over a year. Selling old electronics, clothes, furniture or other unused possessions online can bring in hundreds of dollars, turning clutter into a practical contribution towards your deposit.

Automate Your Savings

Set Up Automatic Transfers

One of the simplest ways to grow your house deposit is to make saving automatic. Arrange a transfer from your checking account to your savings account each payday so you never see the money and are less tempted to spend it. 

Start with an amount you can comfortably afford. Even $50 per week adds up to $2,600 over a year and makes a significant contribution to your deposit without feeling like a sacrifice.

Save Windfalls Immediately

Any unexpected money, such as a tax refund, work bonus or gift, should go straight into your house fund. Treat these windfalls as an instant boost towards your goal rather than extra spending money. By consistently directing surprises like these into savings, you’ll accelerate your progress and reach your deposit faster.

Stay Motivated

Track Your Progress

Keep your motivation high by updating your savings tracker each month. Seeing your balance grow provides a tangible sense of accomplishment and makes the process feel more rewarding. 

Consider creating a visual chart on your wall and colouring in sections as you save more. Celebrating these small wins along the way helps maintain momentum and makes your goal feel more attainable.

Remember Your Why

Saving a house deposit can be challenging, and it’s normal to feel like giving up at times. When that happens, remind yourself why you started in the first place. Picture yourself in your own home, enjoying the independence and security it brings. Holding onto that vision can make the sacrifices feel worthwhile and keep you committed to your plan.

Find Free Entertainment

Saving money doesn’t mean missing out on fun. Explore free activities, such as:

• Visiting parks and beaches

• Having game nights with friends

• Using library resources

• Attending free community events

These activities allow you to enjoy life while keeping your spending in check. They also help you stay on track towards your deposit.

Final Thoughts

Saving for a house deposit can feel challenging, but with a clear plan and consistent effort, it’s entirely achievable. Start by setting a realistic deposit target and creating a timeline that works for you. Track your spending so you know exactly where your money goes, and look for practical ways to save and increase your income.

Automating your savings and taking advantage of windfalls can also give your deposit a steady boost. Furthermore, staying motivated, like celebrating small wins, remembering why you started, and enjoying low-cost activities, makes the process more manageable and rewarding.

Take the next step towards homeownership today. Contact Richmond Residential for expert guidance on home loans and start moving closer to your new home.