• 4 smart ways to share your way to a home deposit

    4 smart ways to share your way to a home deposit

    Sharing is caring, or so the saying goes. But sharing can also be a way to super-charge saving for a home deposit.

    Savings expert Kylie Travers, who runs The Thrifty Issue, about all-things frugal, says it could be possible to “share your way” to a home deposit.

    Kylie says sharing a house – something many money-savvy Gen Ys do – is the most obvious way to reduce expenses, leaving more cash for a deposit, but it doesn’t have to stop there.

    “By sharing cars, clothes, food and other things you could save thousands,” she says.

    Someone who understands this is 29-year-old Sydneysider Natalie Viset, who lives with three friends and has been saving for her first home for five years. Natalie, who produces TV ads for a living, says “sharing to save” is a no-brainer.

    Natalie and Kylie explain four ways to share the load – and reap the benefits.

    1. Share household expenses; all of them

    Sharing a home logically extends to splitting household bills, like power and gas, but there are other expenses, like broadband and even a cleaner, which are cheaper split, than paid for solo.

    4 smart ways to share your way to a home deposit - lamp and windows

    Most housemates tend to share power bills, but what other areas can you share the load? Picture: Kate Hunter

    Natalie and her housemates contribute $40 a week to pay regular bills, but it also covers internet, a cleaner and gardener.

    “We simply estimated how much we would need to cover bills and we’ve never had ‘bill shock’ or a problem paying,” she says. “We all put money into one account and the bills get paid out of there.” 

    Natalie says knowing precisely how much her living expenses are makes it easier for her stick to her own budget.

    2. Share ‘basics’ shopping

    The cash Natalie and her housemates contribute also covers “basic” shopping, for things like toilet paper and kitchen supplies, as it makes no sense to “quadruple up”.

    4 smart ways to share your way to a home deposit - girl at market

    Shopping in bulk with your roomie is a fun and easy way to save. Picture: realestate.com.au

    Kylie says sharing the cost of food is a great way to save, but there’s a caveat. “These arrangements work when there is trust and it goes both ways,” she warns. 

    Shopping in bulk together can not only be a fun activity, but can save you money too.

    “If one flatmate is simply using the other, it’s a recipe for disaster. You need to have clear arrangements for any sharing, but when done well, it can save everyone a lot of money.”

    3. Share a car

    Sharing a car can be another big saver, Kylie says. “When I was 19, my flatmate and I both had our own cars, but often had to go to the same location, so it made sense to share.” 

    The savings can be significant. “You are driving half as much; that will mean half the amount of petrol used and less wear and tear on your car, so reduces expenses such as servicing and tyres,” Kylie adds.

    “If you’re able to get rid of your car completely, you no longer have insurance or registration to pay for either,” she says.

    4. Share your domestic skills – and charge!

    Kylie says it’s possible to earn cash by offering to help housemates with their portion of housework like cooking and cleaning or even drive them around. 

    “Depending on how much you are willing to do, you can actually make money,” she says.

    4 smart ways to share your way to a home deposit - flatmates sharing dinner

    If you’re a good cook, why not capitalise on your skills? Picture: Kate Hunter

     

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    Originally published on flatmates.com.au

     

    About the author

    • Raymond

      Raymond A Ram is the RAMbassador for RAMS Financial Group. Raymond works with the RAMS team to bring simple, helpful and expert information on home loans and savings accounts to life with his down to earth and cheeky personality. He enjoys seeing everyday Australians turn their dreams of saving for a goal or getting into a home a reality. 

      Growing up in Goulburn, NSW, Raymond was brought up with good old-fashioned Aussie values of hard work and a fair go. It soon became apparent that Raymond wasn't content for the conventional path of grazing, producing the very best wool, and finding a nice sheep to settle down with. So it wasn't long before his passion for performing and his talent as a likeable larrikin shone through - landing him a few roles such as 'RAMlet'. He was even tipped to play RAM-bo at one point but chose to become star of the small screen instead as RAMbassador for RAMS. He now finds this role so much more rewarding.

      Contact your local RAMS Home Loan Centre about your home loan options.

      Raymond A Ram
     

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    The information here is of a general nature only and is not intended to constitute financial or tax advice. You should consult your professional adviser, accountant or taxation expert for advice specific to your personal circumstances.

    The views and opinions expressed in this article are those of the author alone and do not necessarily represent the views or opinions of RAMS Financial Group Pty Ltd ABN 30 105 207 538 (RAMS),  Westpac Banking Corporation ABN 33 007 457 141 (Westpac) or their related bodies corporate. This article is strictly for information purposes only and neither RAMS, Westpac nor any of their related bodies corporate make any representation as to the accuracy or completeness of the information in this article or endorse the views expressed in it.