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How to save for a house deposit while renting: Five practical tips

Saving for a house deposit while renting may feel like an uphill battle. Between rent, bills, and everyday expenses, it’s easy to feel like there’s little left to put aside. But don’t worry, it’s not impossible. With careful planning and the right tools, like MyBudget’s Personal Budgeting Services and Savings Calculator, you can take control of your finances and start saving effectively.

Here are five actionable tips to help you save for your deposit while still managing the cost of renting.

1. Analyse your spending and create a budget

Understanding your current spending habits is the first step toward saving smarter.

  • Track everything: Use MyBudget’s app to get a full picture of your spending across credit cards, personal loans, and other accounts.
  • Identify small leaks: See how much you’re spending on things like takeaway, cafes, and unnecessary subscriptions. These small expenses add up quickly and can be redirected into your savings.
  • Cut utility costs: Reduce electricity, water, and gas bills by turning off appliances, using energy-efficient options, and doing full loads of laundry.

Having a clear view of where your money goes will make it easier to make changes that add up over time.

2. Budget to set realistic savings goals

Saving for a deposit can feel overwhelming, but breaking it into smaller, achievable goals keeps the process manageable.

  • Create mini-milestones: Set smaller savings targets, like $5,000 or $10,000, and celebrate when you hit them.
  • Maintain balance: Don’t cut out all social events or lifestyle habits. Being too strict can lead to burnout, making it harder to stick to your plan.
  • Use MyBudget’s Savings Calculator: This tool helps you see exactly how much you need to save each week or month to reach your target, making your goal feel attainable.
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3. Open a dedicated savings account to help you budget

A separate account for your house deposit helps you stay focused on your goal.

  • Keep savings separate: Avoid the temptation to dip into your deposit savings by using a dedicated account.
  • Choose the right account: Look for accounts with higher interest rates and minimal fees to maximise your savings.
  • Automate transfers: Set up automatic payments to this account with every paycheck to ensure consistent progress.

With MyBudget’s expert guidance, you can select the best financial tools to make saving seamless.

4. Create a tailored budgeting plan to save money

Budgeting isn’t just about saving—it’s about planning.

  • Track bills and expenses: Regularly review your bank transactions and mark down when bills are due.
  • Plan for unexpected costs: Build a buffer for emergencies like car repairs or medical expenses.
  • Adjust regularly: Life changes, and so should your budget. Review it weekly or before each pay cycle to ensure you stay on track.

MyBudget’s Personal Budgeting Services can help you create and maintain a budget that works for your unique situation, ensuring you’re always moving closer to your savings goals.

5. Cut daily spending in your personal budget

Small sacrifices can lead to big savings over time.

  • Reassess daily habits: Replace coffee shop visits with homemade brews, and swap dining out for home-cooked meals.
  • Track progress: Seeing the impact of these small changes can motivate you to keep going.
  • Bundle expenses: Split subscriptions or household expenses with housemates to save more.

With MyBudget’s app, you can easily monitor your spending and identify areas where small changes could lead to significant savings.

Bonus tip: Seek professional advice

Sometimes, the best way to save is to get advice tailored to your situation.

  • Understand your borrowing power: Work with a lender or mortgage broker to determine how much you can borrow and what deposit size you’ll need.
  • Explore government programs: Investigate schemes like the First Home Owner Grant or the Home Guarantee Scheme, which can help you buy a home with a smaller deposit.
  • Lean on MyBudget: Our team can help you create a roadmap for saving, reducing debt, and reaching your deposit goals.

Saving for a house deposit while renting may be challenging, but it’s entirely possible with the right approach. By analysing your spending, setting realistic goals, opening a dedicated savings account, and following a tailored budget, you can make consistent progress toward homeownership. Enquire online or call 1300 300 922 to book your free budget consultation today.

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This article has been prepared for information purposes only, and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information in this article you should consider the appropriateness of the information having regard to your objectives, financial situation and needs.